Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
Bitcoin declined to a new weekly low at $9,483 before recovering against the US Dollar. BTC is back above $9,700, but it is still trading below a few key hurdles ($9,950 and $10,000).
- Bitcoin price started an upside correction after trading as low as $9,483 against the US Dollar.
- There are positive signs on the chart, but the bulls need be very careful unless the price breaches $10K.
- There was a break above a key declining channel with resistance near $9,730 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- Ethereum recovered more than 8%, but ripple is still struggling below $0.3000.
Bitcoin Facing Key Hurdles
Yesterday, there was a downside extension in bitcoin price below the $9,600 support against the US Dollar. BTC price even spiked below the $9,500 level and settled well below the 100 hourly simple moving average.
Finally, the price traded to a new weekly low at $9,483 before starting an upside correction. It recovered above the $9,500 and $9,600 levels to start the current recovery wave.
More importantly, there was a break above a key declining channel with resistance near $9,730 on the hourly chart of the BTC/USD pair. Besides, bitcoin price climbed above the 23.6% Fib retracement level of the downward move from the $10,400 high to $9,483 low.
The price is now showing a few positive signs above the $9,700 area and it could continue to recover. However, there are a few key hurdles on the upside near the $9,940 and $10,000 levels.
The 50% Fib retracement level of the downward move from the $10,400 high to $9,483 low is close to $9,940 to act as the first major resistance. The main resistance is near $10,000 since it is near the 100 hourly simple moving average.
Therefore, a successful break above $9,940 and then a follow up move above the $10,000 handle is needed to start a fresh and renewed uptrend. In the mentioned case, the price could revisit the $10,500 resistance area.
What if the Bulls Fail?
There are chances that bitcoin bulls struggle near $9,940 and $10,000. If they fail to gain strength above $10,000, the price may perhaps resume its decline.
On the downside, the first support is seen near the $9,600 and $9,500 levels. Any further losses might open the doors for a larger downside correction towards $9,000.
Technical indicators:
Hourly MACD – The MACD is slowly losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now back above the 50 level.
Major Support Levels – $9,600 followed by $9,500.
Major Resistance Levels – $9,940, $10,000 and $10,100.
