BUY BITCOIN
Bitcoin is struggling to gain bullish momentum above $9,000 against the US Dollar. BTC must climb above $9,200 to set the stage for a rally towards $10,000 in the near term.
- Bitcoin is trading in a broad range below the key $9,200 resistance zone.
- The price is consolidating above $8,800 and the 100 hourly simple moving average.
- There is a key contracting triangle forming with resistance near $9,040 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could either surge above $9,200 or it might start a fresh decline towards $8,400.
Bitcoin Could Gain Momentum
After forming a support base above $8,600, bitcoin started an upward move towards $9,000 against the US Dollar. BTC price broke a few hurdles near $8,950 and the 100 hourly simple moving average to move into a positive zone.
The price even climbed above the $9,000 level and traded as high as $9,120 recently. It is currently correcting lower below $9,000. There was a break below the 23.6% Fib retracement level of the upward move from the $8,536 low to $9,120 high.
On the downside, the $8,800 zone is acting as a strong support along with the 100 hourly SMA. More importantly, there is a key contracting triangle forming with resistance near $9,040 on the hourly chart of the BTC/USD pair.
If bitcoin breaks the triangle resistance and $9,050, it could gain bullish momentum. An initial resistance is near the $9,120 high, above which it could continue to rise towards the $9,200 resistance zone.
To start a strong upward move, the bulls need to clear the $9,200 resistance. If they succeed, the price is likely to rally towards $9,500 or even $10,000 in the coming sessions. An intermediate resistance might be near $9,800.
Bearish Break
If bitcoin price fails to clear the triangle resistance or $9,120, it could start a fresh decline. An initial support is near the 100 hourly SMA, followed by $8,800.
A close below the 100 hourly SMA and $8,800 could increase selling pressure. In the mentioned bearish case, the price might decline towards the $8,600 region or $8,540. The next major support for the bulls below the $8,536 low is near the $8,400 level.
Technical indicators:
Hourly MACD – The MACD is likely to gain pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 50 level.
Major Support Levels – $8,800 followed by $8,540.
Major Resistance Levels – $9,050, $9,120 and $9,200.
