Bitcoin is currently correcting higher from the $8,813 swing low against the US Dollar. BTC is trading above $9,000, but it is facing many hurdles near $9,200 and $9,300.
- Bitcoin started an upside correction after trading to a new monthly low at $8,813.
- The price is recovering nicely and it is trading above the $9,000 level.
- There is a key bearish trend line forming with resistance near $9,260 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a fresh decrease if it fails to settle above $9,200 and $9,300.
Bitcoin Price is Approaching Hurdles
After a strong decline below $9,000, bitcoin price found support near the $8,800 level against the US Dollar. BTC traded to a new monthly low at $8,813 and recently started an upside correction.
There was a break above the $9,000 resistance level. The bulls even pushed the price above a connecting bearish trend line forming with resistance near $9,100 on the hourly chart of the BTC/USD pair.
However, the pair is facing resistance near $9,200 and the 100 hourly simple moving average. A high is formed near $9,190 and the price is currently trading in a range. An initial support is near the 23.6% Fib retracement level of the recent recovery from the $8,813 low to $9,190 low.
Bitcoin price back above $9,000: Source: TradingView.com
On the upside, an initial resistance is near the $9,150 level and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $9,260 on the same chart.
The main resistance is still near the $9,300 level, above which bitcoin price is likely to gain bullish momentum in the coming sessions. The next crucial resistance above $9,300 could be $9,500.
Fresh Drop in BTC
If bitcoin fails to clear the $9,200 and $9,300 resistance levels, it could start a fresh decline. The first key support is near the $9,040 level, followed by the 50% Fib retracement level of the recent recovery from the $8,813 low to $9,190 low.
A successful bearish break and close below $9,000 could start a fresh decrease. In the mentioned bearish case, the price is likely to revisit the $8,813 low of $8,000 in the near term.
Technical indicators:
Hourly MACD – The MACD is slowly moving in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is just above the 50 level.
Major Support Levels – $9,040, followed by $9,000.
Major Resistance Levels – $9,150, $9,200 and $9,300.
Author: Aayush Jindal
Source link
