Bitcoin started a downside correction from the $9,780 swing high against the US Dollar. BTC found support near $9,600 and it is currently gaining bullish momentum for a fresh rally.
- Bitcoin is trading nicely above the $9,500 support zone and the 100 hourly simple moving average.
- A short-term downside correction seems to be over near the $9,570 level.
- There was a break above a key contracting triangle with resistance near $9,640 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could soon break the $9,700 and $9,800 resistance levels for more upsides.
Bitcoin Price Could Resume Rally
Yesterday, we saw a sharp increase in bitcoin price above the main $9,500 resistance against the US Dollar. BTC rallied above the $9,700 level and settled above the 100 hourly simple moving average.
The price traded to a new weekly high near $9,780 and started a downside correction. It broke the $9,700 level to move into a short term correction phase. However, the decline found support near $9,570 and the price remained well above the $9,500 area.
A low was formed near $9,570 and the price is currently rising. There was a break above the 23.6% Fib retracement level of the recent correction from the $9,781 high to $9,570 low. More importantly, there was a break above a key contracting triangle with resistance near $9,640 on the hourly chart of the BTC/USD pair.
Bitcoin price holding $9,500: Source: TradingView.com
The current technical structure suggests bitcoin price could continue to rise above $9,700. Immediate resistance is near the $9,675 level. It is close to the 50% Fib retracement level of the recent correction from the $9,781 high to $9,570 low.
If the bulls gain momentum above $9,670 and $9,700, the price is likely to climb above the $9,780 swing high in the near term. The next target for them may perhaps be $10,000 or $10,200.
Downsides Might be Limited in BTC
On the downside, bitcoin is likely to find a strong buying interest near the $9,600 level. If there is a daily close below the $9,500 support, the price could continue lower.
The next major support is seen near the $9,500 level, below which the 100 hourly SMA at $9,450 is likely to stop the decline.
Technical indicators:
Hourly MACD – The MACD is about to move back into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Levels – $9,600, followed by $9,500.
Major Resistance Levels – $9,670, $9,700 and $9,800.