- Bitcoin price is holding a couple of important supports near the $9,200 level against the US Dollar.
- The price is likely to accelerate gains if there is a clear break above the $9,400 and $9,500 levels.
- There is a major breakout pattern forming with resistance near $9,375 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- Ethereum and ripple are also trading with a positive bias above $185 and $0.2950 respectively.
Bitcoin price is consolidating above key supports against the US Dollar. BTC price is likely to start a strong rise once it settles above $9,400 and $9,500.
Bitcoin Price Analysis
After struggling to settle above $9,500, bitcoin started a downside correction against the US Dollar. BTC corrected lower and traded below the $9,400 and $9,350 levels. However, the price stayed above the $9,200 support and the 100 hourly simple moving average.
At the outset, the price is consolidating in a contracting range above the $9,200 support. The last swing high was near $9,435 and the last swing low was near $9,278. The price is currently moving higher above the $9,300 level.
Moreover, there was a break above the 23.6% Fib retracement level of the recent decline from the $9,435 high to $9,278 low. An immediate resistance is near the $9,350 and $9,375 levels.
Additionally, the 50% Fib retracement level of the recent decline from the $9,435 high to $9,278 low is near the $9,350 level. More importantly, there is a major breakout pattern forming with resistance near $9,375 on the hourly chart of the BTC/USD pair.
Therefore, an upside break above $9,350 and $9,375 could set the pace for more upsides in the near term. The next major resistance is near the $9,500 area, above which bitcoin may perhaps accelerate towards $9,600 and $9,800.
On the downside, an immediate support is near the triangle at $9,280. If there is a downside break, the price could retest the $9,200 support. Any further losses below $9,200 might clear the path for a push towards the $9,000 and $8,960 support levels.
Looking at the chart, bitcoin seems to be preparing for the next break either above $9,375 or below $9,280. Having said that, a downside break below the $9,200 support area won’t be easy. Thus, there are high chances of an upside break above the $9,375 and $9,400 resistance levels in the near term.
Technical indicators:
Hourly MACD – The MACD is likely to move back into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently declining and is just below the 50 level.
Major Support Levels – $9,280 followed by $9,200.
Major Resistance Levels – $9,375, $9,400 and $9,500.
