Technicals Suggest Bitcoin Needs To Clear $9,100 For Hopes of a Fresh Rally

Aayush Jindal

1 year ago

2 mins read

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Bitcoin jumped above the $8,800 and $9,000 resistance levels against the US Dollar. However, BTC is facing a major hurdle at $9,100, above which it could rally sharply.

Bitcoin is currently consolidating in a broad range below the $9,000 and $9,100 levels.
The main support on the downside is forming near the $8,250 and $8,200 levels.
There is a key connecting bearish trend line forming with resistance near $9,040 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The bulls need to gain momentum above $9,000 and $9,100 for a sustained upward move.

Bitcoin Could Struggle Near $9,000 and $9,100

Yesterday, we discussed a possible push in bitcoin price towards the $9,000 resistance against the US Dollar. BTC price did surge above the $8,800 resistance and tested the $9,000 pivot zone.

There was a break above the 23.6% Fib retracement level of the key decline from the $10,080 swing high to $8,267 low. On the upside, the $9,000 zone acted as a strong resistance and prevented further gains.

Bitcoin price remained well below the 100 hourly simple moving average and topped near the $9,000 level. It even failed to test the 50% Fib retracement level of the key decline from the $10,080 swing high to $8,267 low.

More importantly, there is a key connecting bearish trend line forming with resistance near $9,040 on the hourly chart of the BTC/USD pair. It seems like there is a major hurdle forming for the bulls near the $9,000 and $9,100 levels.

If there is an upside break above the $9,100 resistance and the trend line, there are chances of a sustained upward move. An immediate resistance is near $9,200, above which the price will most likely revisit the $9,500 resistance in the near term.

Breakdown Support

On the downside, there is a crucial support base forming near the $8,250 and $8,200 levels. If bitcoin fails to climb above $9,000, it could revisit the range support at $8,250.

To start another bearish wave, the bears need to clear the $8,250 and $8,200 support levels. The next key support is seen near the $8,000 level, below which there is a risk of a significant decline towards the $7,500 support zone.

Technical indicators:

Hourly MACD – The MACD is about to move into the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently rising towards the 50 level.

Major Support Levels – $8,400 followed by $8,250.

Major Resistance Levels – $9,000, $9,100 and $9,175.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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