- Bitcoin price started a strong recovery and broke the key $10,000 resistance area against the US Dollar.
- The price surged more than 10% and broke the $10,500 resistance to test $10,800.
- There was a break above a major bearish trend line with resistance near $9,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price traded as high as $10,807 and it is currently consolidating gains.
Bitcoin price surged more than 10% above $10,500 against the US Dollar. BTC is currently consolidating gains and dips are likely to find a strong support above $10,000 and $10,200.
Bitcoin Price Analysis
In the past few days, we saw a major drop in bitcoin price below the $10,000 support against the US Dollar. The BTC/USD pair traded close the $9,000 support level and formed a new monthly low near $9,095. Later, the price formed a decent support base above $9,400 and recently started an upward move. It surged more than $1,000 and broke the key $10,000 resistance.
There was a break above the 61.8% Fib retracement level of the last key drop from the $11,060 swing high to $9,100 swing low. Moreover, there was a break above a major bearish trend line with resistance near $9,800 on the hourly chart of the BTC/USD pair. The pair even settled above the $10,400 level and the 100 hourly simple moving average. The upward move was such that the price tested the $10,800 resistance and a swing high was formed near $10,807.
The price is currently consolidating below $10,800 and trading inside a contracting triangle. If there is a downside break, the price could test $10,440 or the 23.6% Fib retracement level of the recent wave from the $9,271 low to $10,807 high. However, the main support on the downside is near the $10,200 level and the 100 hourly simple moving average.
Moreover, the 50% Fib retracement level of the recent wave from the $9,271 low to $10,807 high is also near the $10,040 level. Therefore, dips towards the $10,400 and $10,200 levels are likely to find a lot of buyers. On the upside, a break above the $10,800 resistance might start another rise.
Looking at the chart, bitcoin price is clearly trading in a positive zone above the $10,200 and $10,400 support levels. If there are more gains above $10,800, the price might move towards the $11,500 level in the near term.
Technical indicators:
Hourly MACD – The MACD is slowly moving back into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting from 70 and it could test 55.
Major Support Levels – $10,400 followed by $10,200.
Major Resistance Levels – $10,800, $11,000 and $11,500.
