Bitcoin breaks strong resistance: that's what could propel it to $ 10,000

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Bitcoin breaks strong resistance: that's what could propel it to $ 10,000

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Bitcoin broke a major resistance zone near $ 9,000 and $ 9,100 against the U.S. dollar. The price of BTC is increasing and could soon exceed $ 9,500 and test $ 10,000.

  • Bitcoin started a strong rise and broke the key resistance zone of $ 9,100.
  • The price is now trading near $ 9,400 and may soon attempt to generate $ 9,500.
  • A major bullish trend line is forming with support close to $ 9,120 on the hourly chart of the BTC / USD pair (data from Kraken).
  • The pair could accelerate its upside if there was a correct H4 close above $ 9,500 and $ 9,570.

Bitcoin increases sharply

Yesterday we discussed how the price of bitcoin could gain a bullish momentum if it breaks $ 9,000 against the US dollar. The BTC price managed to overcome the resistance of $ 9,000 and the simple moving average of 100 hours.

The bulls even pushed the price above the key resistance zone of $ 9,100. There was a break above the bearish trend line followed this week with resistance close to $ 8,910 per hour graphic of the BTC / USD pair.

Bitcoin was trading up to $ 9,408 and is currently consolidating its gains. Initial downside support is close to the level of $ 9,120. It is close to the Fibonacci retracement level of 23.6% of the recent increase, going from the lowest of $ 8,186 to the highest of $ 9,408.

More importantly, a major uptrend line is forming with support close to $ 9,120 on the same chart. If there is a bearish break below the trend line, the price could correct lower towards the $ 9,000 support.

On the upside, the $ 9,400 level is an initial resistance zone. Main resistance is close to the $ 9,500 and $ 9,570 levels. If the bulls accelerate above the resistance of $ 9,570, the price could start to rise sharply in the coming sessions. The next major obstacle for bulls is seen near the $ 10,000 level.

Another drop?

If Bitcoin does not exceed the $ 9,000 support, there is a chance of further losses to the $ 8,800 support level. It is close to 50% of the Fib retracement level of the recent increase, going from the lowest of $ 8,186 to the highest of $ 9,408.

Any further loss below the $ 8,800 support area could pave the way for a further decline to short-term support of $ 8,500.

Technical indicators:

Hourly MACD – MACD is slowly losing momentum in the uptrend.

Hourly Relative Index (RSI): The RSI for BTC / USD is now well above level 60.

Main support levels: $ 9,120 followed by $ 9,000.

Major resistance levels: $ 9,400, $ 9,570 and $ 10,000.