Bitcoin Smashes Heavy Uptrend Resistance as Bulls Take Over Crypto Market

1
0
Share:

Bitcoin gained around 2% and it broke the $9,500 resistance against the US Dollar. BTC is currently consolidating gains and indicators suggest high chances of more upsides above $9,600.

  • Bitcoin is up close to 2% and it surpassed the key $9,500 resistance level.
  • The price traded to a new monthly high at $9,568 and it is above the 100 hourly simple moving average.
  • There is a major bullish trend line forming with support near $9,420 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could correct lower in the short-term, but the bulls are likely to protect $9,450 or $9,400.

Bitcoin Price Breaks $9,500

In the past two days, there was a positive price action in bitcoin above $9,200 against the US Dollar. BTC started a steady rise and broke the $9,300 and $9,500 resistance levels.

The price even spiked above the $9,550 resistance and settled well above the 100 hourly simple moving average. It traded to a new monthly high at $9,568. Bitcoin is currently consolidating gains above the $9,500 level.

An initial support is near the $9,500 level since it is close to the 23.6% Fib retracement level of the recent surge from the $9,284 swing low to $9,568 high. The first major support is near the $9,450 level, below which the price might extend its decline.

There is also a major bullish trend line forming with support near $9,420 on the hourly chart of the BTC/USD pair. The trend line coincides with the recent breakout zone and the 50% Fib retracement level of the recent surge from the $9,284 swing low to $9,568 high.

Bitcoin price smashes $9,500: Source: TradingView.com

On the upside, the bulls need to gain strength above the $9,550 and $9,580 levels. If they succeed, the price is likely to accelerate higher towards $9,800 in the near term. Any further gains could lead the price towards the $10,000 barrier.

Uptrend Intact in BTC

If bitcoin corrects lower, the bulls are likely to protect $9,450 or $9,400. A downside break below the trend line support might call for an extended decline towards $9,360.

The next major support is near the $9,300 level, followed by the 100 hourly simple moving average. Any further losses may perhaps push the price back towards the $9,000 support.

Technical indicators:

Hourly MACD – The MACD is currently moving nicely in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well above the 70 level.

Major Support Levels – $9,450, followed by $9,400.

Major Resistance Levels – $9,550, $9,580 and $9,650.

   

Source