- Bitcoin price corrected lower and tested the $9,500 support area against the US Dollar.
- The price is back in a positive zone and it recently rallied above the $10,000 resistance.
- There was a break above a major bearish trend line with resistance near $10,040 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair is likely to continue higher towards $10,500 and $11,000 in the near term.
Bitcoin price is back in a positive zone above $10,000 against the US Dollar. BTC is likely to accelerate its rise above the $10,500 resistance area in the near term.
Bitcoin Price Analysis
This past week, there was a downside correction in bitcoin price below the $9,800 support level against the US Dollar. BTC even broke the $9,650 support level and settled below the 55 simple moving average (4-hours).
However, the $9,500 support area acted as a strong buy zone. A swing low was formed near $9,460 and the price recently started a strong rise. It surpassed the $9,700 and $9,800 levels.
Besides, there was a break above the 50% Fib retracement level of the last main decline from the $10,526 high to $9,460 low. More importantly, there was a break above a major bearish trend line with resistance near $10,040 on the 4-hours chart of the BTC/USD pair.
Bitcoin price is now trading above the $10,000 level and the 55 simple moving average (4-hours). It tested the $10,250 and $10,280 resistance levels.
It seems like the 76.4% Fib retracement level of the last main decline from the $10,526 high to $9,460 low is acting as a resistance. The price is currently declining, but it remains well supported near $10,050 and $10,000.
The 55 simple moving average (4-hours) is also near the broken trend line and $10,000 to provide support. Any further losses could push the price towards the $9,800 support area.
On the upside, an initial hurdle is near the $10,250 and $10,280 levels. A successful break above the $10,280 level could open the doors for more gains in the coming sessions. The next target could be $10,500 or $10,800.
Looking at the chart, bitcoin price is back in a positive zone above the $10,000 level. As long as the price is above the 55 SMA, it remains well supported for more gains above the $10,280 level.
Technical indicators
4 hours MACD – The MACD is moving nicely in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI is now well above the 50 level.
Key Support Levels – $10,050 and $10,050.
Key Resistance Levels – $10,250, $10,280 and $10,500.
