- Bitcoin price corrected lower sharply after trading to a new yearly high at $9,390 against the US Dollar.
- The price remained well bid and it is back above the key $9,000 pivot level.
- There is a crucial bullish trend line forming with support near $8,780 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to break the $9,260 and $9,300 levels to start the next bullish wave in the near term.
Bitcoin price surged higher above $9,000 and $9,300 against the US Dollar. BTC is currently gaining strength and it is likely to climb further above $9,400 and $9,500.
Bitcoin Price Analysis
In the past few days, bitcoin price consistently gained pace above $8,800 against the US Dollar. The BTC/USD pair did hit our most bullish targets, including $9,000 and $9,200. It even broke the $9,300 level and settled well above the 100 hourly simple moving average. The recent bullish wave took the price close to the $9,400 level and a new yearly high was formed at $9,392.
After trading as high as $9,392, there was a sharp downside correction. It spiked below the $9,100 and $9,000 levels. However, there was a quick reversal and the price settled above $9,000. Moreover, it climbed above $9,200 and recently formed a swing high at $9,255. It is currently correcting lower and tested the $9,150 level. The 23.6% Fib retracement level of the recent rally from the $8,830 low to $9,255 high is also near $9,155.
On the downside, there are many supports near the $9,100 and $9,050 levels. The main support is near $9,040 and the 50% Fib retracement level of the recent rally from the $8,830 low to $9,255 high is also near $9,155. If there are more downside, the price could revisit the $9,000 support. Besides, there is a crucial bullish trend line forming with support near $8,780 on the hourly chart of the BTC/USD pair.
On the upside, an initial resistance is near the $9,250 and $9,300 levels. If there is an upside break above $9,300 and a connecting bearish trend line, there could be more upsides. The next key resistances are near $9,400 and $9,500.
Looking at the chart, bitcoin price clearly recovered above $9,100 after a sharp downside correction. It is now trading nicely above $9,150 and it is likely to climb further above $9,300, $9,400 and $9,500 in the coming sessions. The main target this week could be $10,000.
Hourly MACD – The MACD is about to move back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 50 level.
Major Support Levels – $9,040 followed by $9,000.
Major Resistance Levels – $9,300, $9,400 and $9,500.
Author: Aayush Jindal