Bitcoin is currently consolidating above the support levels of $ 8,500 and $ 8,250 against the U.S. dollar. The price of BTC seems to be preparing for a strong bullish rise above $ 9,000 and $ 9,100.
- Bitcoin is trading in a crucial range above the support levels of $ 8,500 and $ 8,200.
- Bulls must overcome the $ 9,000 and $ 9,100 hurdles to gain strength.
- There has been a break above a downtrend line with resistance close to $ 8,920 on the hourly chart of the BTC / USD pair (Kraken data).
- The pair must settle above $ 9,100 to start a new bullfight anytime soon.
Bitcoin could exceed $ 9,100
In recent sessions, the price of bitcoin has remained well above the support levels of $ 8,500 and $ 8,250 against the US dollar. The price of BTC traded at $ 8,203 and recently started a steady recovery wave.
Exceeding the resistance levels of $ 8,500 and $ 8,600. In addition, there was a break above the Fibonacci retracement level of 23.6% from the main trough, from the highest of $ 10,020 to the lowest of $ 8,203.
The upward movement was such that there was a break above a downward trend line with resistance close to $ 8,920 per hour graphic
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of the BTC / USD pair. Bitcoin is now trading above $ 8,900 and testing the 100-hour simple moving average.
Bitcoin price
Immediate resistance above the 100-hour simple moving average is close to the $ 9,100 level. It represents almost 50% of the Fib retracement level of the main decline, going from the highest of $ 10,020 to the lowest of $ 8,203.
If BTC breaks the SMA at 100 hours and clears the resistance of $ 9,100, there could be a sharp increase towards the level of $ 9,500. Any further gain could push the price towards resistance levels of $ 9,800 and $ 10,000. Intermediate resistance could be close to the level of $ 9,880.
Bearish reaction
If Bitcoin fails to eliminate the 100-hour SMA or the $ 9,100 resistance, it could react downward. Initial support is close to the $ 8,800 level.
The first major support is seen near the $ 8,500 level, below which bears should target a test of the lower end of the range at $ 8,250. Any additional loss below $ 8,250 or $ 8,200 could open the door to a sharp drop below $ 8,000 and $ 7,800 in the short term.
Technical indicators:
Hourly MACD – MACD is slowly gaining ground in the bullish zone.
Hourly Relative Strength (RSI): The RSI for BTC / USD is now well above the 50 level.
Main levels of support: $ 8,800 followed by $ 8,500.
Main resistance levels: $ 9,000, $ 9,100 and $ 9,175.
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