- Bitcoin price is slowly correcting higher and trading above $9,000 against the US Dollar.
- There is a major resistance forming near $9,300 and the 55 simple moving average (4-hours).
- There is a connecting bearish trend line in place with resistance near $9,150 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair must surpass the $9,300 resistance level to start a steady increase.
Bitcoin price is trading in a bearish zone below $9,300 and $9,500 against the US Dollar. BTC remains at a risk of more losses unless it climbs above the $9,300 resistance.
Bitcoin Price Analysis
This past week, bitcoin price declined sharply below the $9,500 support against the US Dollar. BTC gained bearish momentum below the $9,300 support and the 55 simple moving average (4-hours).
Finally, it traded below the $9,000 support and formed a new multi-week low at $8,816. Recently, there was an upside correction and the price recovered above the $9,000 level.
There was a break above the 23.6% Fib retracement level of the downward move from the $9,792 swing high to $8,816 low. It seems like there is a connecting bearish trend line in place with resistance near $9,150 on the 4-hours chart of the BTC/USD pair.
Bitcoin is currently attempting a close above the trend line resistance and $9,200. The first key resistance is near the $9,240 level and the 55 simple moving average (4-hours). The main resistance is near the $9,300 level or the 50% Fib retracement level of the downward move from the $9,792 swing high to $8,816 low.
A clear break above the $9,240 and $9,300 resistance levels might open the doors for a strong increase. The next resistance is near $9,420, above which the price might surge towards the $9,580 and $9,600 levels in the near term.
Conversely, the price could fail to continue higher above $9,240 or $9,300. In the mentioned case, the price is likely to trade below the $9,000 support. The next support is near $8,820, below which it could dive towards the $8,500 level.
Looking at the chart, bitcoin price is now showing a few positive signs above the $9,100 level. Having said that, the price must climb above the $9,300 resistance and the 55 simple moving average (4-hours) to continue higher.
Technical indicators
4 hours MACD – The MACD is currently losing momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI is currently just above the 50 level.
Key Support Levels – $9,000 and $8,800.
Key Resistance Levels – $9,240, $9,300 and $9,580.
