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- Bitcoin price started a downside correction below the $9,200 support against the US Dollar.
- The price tested the $8,950 support area and it is currently moving higher towards $9,200.
- There was a break above a declining channel with resistance at $9,120 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is showing positive signs and it could continue to rise if it breaks the $9,275 resistance.
Bitcoin price is currently moving higher and likely completed a downside correction against the US Dollar. BTC must break $9,220 and $9,275 to continue higher in the near term.
Bitcoin Price Analysis
After setting a new 2019 high near $9,472, bitcoin price started a downside correction against the US Dollar. The BTC/USD pair broke the $9,300 and $9,200 support levels to start the recent correction. It even spiked below the $9,000 support and the 100 hourly simple moving average. However, downsides were limited and the price formed a swing low near the $8,951 level.
The price is currently climbing higher and is trading above $9,050 plus the 100 hourly simple moving average. There was a break above the 23.6% Fib retracement level of the recent decline from the $9,472 high to $8,951 low. Moreover, there was a break above a declining channel with resistance at $9,120 on the hourly chart of the BTC/USD pair.
The pair is currently testing the 50% Fib retracement level of the recent decline from the $9,472 high to $8,951 low. If there is an upside break above the $9,220 level, the price could continue to rise in the near term. The next immediate resistance is near $9,275. It is near the 61.8% Fib retracement level of the recent decline from the $9,472 high to $8,951 low.
Therefore, a successful close above $9,275 might push the price towards the last swing high at $9,472. On the downside, an initial support is near the $9,070 level and the 100 hourly SMA. The main supports are $9,000 and $8,950, below which the price may perhaps extend its downside correction.
Looking at the chart, bitcoin price successfully held the $9,000 support area despite a couple of spikes. As long as the price is holding the $9,000 support and the $8,950 pivot, it could climb higher towards $9,400 and $9,500. Conversely, a downside break below $8,950 could put pressure on the bulls. The next key support is near the $8,740 level.
Technical indicators:
Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently just above the 50 level.
Major Support Levels – $9,070 followed by $9,000.
Major Resistance Levels – $9,220, $9,275 and $9,400.
