Bitcoin recovered sharply after trading to a new monthly low at $8,910 against the US Dollar. BTC is now trading above the 100 hourly SMA, but it is facing a major resistance at $9,500.
- Bitcoin is up more than 4% and recovered most losses to trade above $9,400.
- The price is now facing a major hurdle near the $9,500 resistance zone.
- There was a break above a major bearish trend line with resistance near $9,330 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could either rally further above the $9,500 resistance or it might resume its decline below $9,300.
Bitcoin Price Showing Positive Signs
Yesterday, we discussed the chances of more losses in bitcoin price below the $9,100 and $9,000 levels against the US Dollar. BTC did extend its decline below the $9,000 handle and traded to a new monthly low at $8,910.
However, the price started a strong upward move and broke many hurdles near $9,100 and $9,200. The bulls gained pace and even pushed the price above the $9,300 level and the 100 hourly simple moving average.
There was also a break above a major bearish trend line with resistance near $9,330 on the hourly chart of the BTC/USD pair. It opened the doors for more gains above the $9,400 level and the price tested the $9,500 resistance zone.
A high is formed near $9,494 and the price is currently consolidating gains. There is a short-term bullish flag formed with resistance near the $9,440 level. If there is a clear break above $9,440 and $9,450, there are chances of a fresh increase.
On the upside, bitcoin price must clear the $9,500 resistance zone to move further into a positive zone. The next major resistance is seen near the $9,640 level, above which the price could revisit $9,800.
Bearish Reaction From $9,500 in BTC?
If bitcoin fails to continue higher above the $9,500 resistance, it could react to the downside. An initial support is seen near the $9,400 level and the 100 hourly SMA.
A bearish break below the 100 hourly SMA could start a fresh downward move. In the mentioned case, there is a risk of more losses towards the $9,200 and $9,100 levels.
Technical indicators:
Hourly MACD – The MACD is currently gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Levels – $9,400 followed by $9,100.
Major Resistance Levels – $9,500, $9,640 and $9,800.
