Bitcoin avoided a major downtrend and recovered from the $8,680 support against the US Dollar. BTC price is trading above $9,000, but it must clear $9,300 to start a strong increase.
- Bitcoin is up more than 4% and it climbed above the $9,000 resistance.
- The price is trading well above the $9,100 level, but it is still facing hurdles near $9,300.
- There is a rising channel forming with support near $9,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a strong increase if it settles above the $9,300 resistance zone.
Bitcoin Price Gaining Bullish Momentum
Bitcoin price formed a strong support base near the $8,680 level and recently started a decent recovery against the US Dollar. BTC price broke a couple of important resistances near $9,000 to move into a short-term positive zone.
Besides, there was a close above the $9,100 level and the 100 hourly simple moving average. The price traded close to the $9,300 resistance zone and traded as high as $9,287.
It is currently consolidating gains and trading above well above $9,100. An initial support is near the $9,145 level. It represents the 23.6% Fib retracement level of the recent rise from the $8,684 low to $9,287 high.
More importantly, there is a rising channel forming with support near $9,100 on the hourly chart of the BTC/USD pair. If bitcoin price breaks the channel support, it could dive towards the $8,980 support level or the 100 hourly simple moving average.
The 50% Fib retracement level of the recent rise from the $8,684 low to $9,287 high might also provide support near the $8,985 level.
On the upside, the main hurdle is near the $9,300 and $9,330 levels (the previous breakdown zone). Besides, the price failed to clear the $9,300 resistance zone in the past few days. These two reasons increase importance of the $9,300 resistance. A successful close above $9,300 could lead the price towards $9,500 and $9,550.
Fresh Decline in BTC?
If there is a clear break and close below the $8,980 support zone, bitcoin price is likely to resume its decline. The next support is seen near the $8,825 and $8,800 levels.
The main support this week is near the $8,680 level. A bearish close below the $8,680 level may perhaps open the doors for a larger decline towards $8,400 and $8,200.
Technical indicators:
Hourly MACD – The MACD is about to move into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting lower from the 70 level.
Major Support Levels – $9,100 followed by $8,980.
Major Resistance Levels – $9,300, $9,330 and $9,500.
