- Bitcoin price corrected lower after tagging the $10,550 resistance area against the US Dollar.
- The price is currently consolidating above the key $8,900 and $9,000 support levels.
- There is a connecting bullish trend line forming with support near $9,120 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair is likely to rise again as long as there is no close below the $9,100 and $9,000 supports.
Bitcoin price is trading with a positive bias above $9,000 against the US Dollar. BTC could face resistance near $9,725 if it climbs higher in the near term.
Bitcoin Price Analysis
This past week, bitcoin price started a downside correction after tagging the $10,550 resistance against the US Dollar. BTC corrected lower below the $10,000 and $9,725 support levels.
Moreover, there was a break below the $9,500 support, but the price stayed above the 55 simple moving average (4-hours). Finally, there was a break below the $9,000 support and the price traded as low as $8,915.
Later, the price climbed back above the $9,400 and $9,500 levels. Besides, there was a break above the 50% Fib retracement level of the downside correction from the $10,541 high to $8,915 low.
However, the price struggled to gain strength above the $9,725. More importantly, it failed near the 61.8% Fib retracement level of the downside correction from the $10,541 high to $8,915 low. As a result, there was a fresh decline and the price tested the $9,000 support.
At the moment, the price is consolidating gains above the $9,000 and $9,120 support levels. Additionally, there is a connecting bullish trend line forming with support near $9,120 on the 4-hours chart of the BTC/USD pair.
If there is a downside break below the trend line, bitcoin could test the $9,000 support area. The main support is near the $8,900 area, below which there is a risk of another bearish wave. The next key support is near the $8,500 and $8,460 levels.
On the upside, an initial resistance is near the $9,540 area. The main resistance is near the $9,725 level, above which the price could rise steadily towards $10,000 and $10,550 in the near term.
Looking at the chart, bitcoin price is currently consolidating above key supports near $9,100. As long as there is no daily close below $9,000, the price is likely to start a decent upward move towards $9,725 and $10,000.
Technical indicators
4 hour MACD – The MACD is struggling to gain momentum in the bullish zone.
4 hour RSI (Relative Strength Index) – The RSI is currently stable above the 50 level, with positive signs.
Key Support Levels – $9,120 and $9,000.
Key Resistance Levels – $9,400, $9,500 and $9,725.
