Bitcoin is rising steadily and it recently broke the $9,400 resistance against the US Dollar. BTC’s daily chart suggests that the bulls are likely aiming a larger rally towards $10,000.
- Bitcoin formed a strong support base near $9,000 and recently started a fresh increase.
- The price is currently trading well above the $9,200 support and the 100-day simple moving average.
- There was a break above a crucial bearish trend line with resistance near $9,350 on the daily chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct lower, but it seems like the bulls are likely to aim a test of $9,800 or $10,000.
Bitcoin Price Could Rally To $10,000
After a minor decline below the $9,000 level, bitcoin price found support at $8,800 against the US Dollar. BTC remained well bid above the $8,800 level and the 100-day simple moving average.
As a result, a fresh increase was initiated and the price broke a few important hurdles near $9,000, $9,300 and $9,400 (as discussed in yesterday’s analysis). There was a break above the 23.6% Fib retracement level of the key downward move from the $10,376 swing high to $8,802 low.
More importantly, there was a break above a crucial bearish trend line with resistance near $9,350 on the daily chart of the BTC/USD pair. This is a positive sign and suggests that the bulls are taking control above $9,300.
Bitcoin price breaks $9,400: Source: TradingView.com
An initial resistance on the upside is near $9,580 and $9,600. It is close to the 50% Fib retracement level of the key downward move from the $10,376 swing high to $8,802 low. A successful break above the $9,600 level could open the doors for a larger upward move towards the $10,000 resistance in the coming days.
Chances of Downside Correction?
In the short-term, bitcoin might correct lower towards the broken bearish trend line at $9,320 or $9,300. If there is a bearish break below the $9,300 level, the price might find support near $9,200.
Any further losses may perhaps push the price towards the $8,800 support or the 100-day simple moving average, which holds the key for a larger breakdown. A close below $8,800 and $8,650 might start a strong decline towards $8,000 or $7,800 in the near term.
Technical indicators:
Daily MACD – The MACD is currently gaining momentum in the bullish zone.
Daily RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $9,300 followed by $8,800.
Major Resistance Levels – $9,580, $10,000 and $10,300.