Bitcoin found a strong support near $9,330 and started a fresh increase against the US Dollar. However, BTC must settle above the 100 SMA (4-hours) for a sustained upward move.
- After trading to a new weekly low at $9,336, bitcoin price started a fresh increase above $9,500.
- The price is now trading nicely above the $9,600 and $9,700 levels.
- There is a major bearish trend line forming with resistance near $10,080 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair must climb above the 100 simple moving average (4-hours) and $10,080 to continue higher.
Bitcoin is Still Facing Hurdles
This past week, bitcoin failed once again to gain momentum above $10,300 and $10,500 against the US Dollar. As a result, BTC price declined below the $10,000 support level and the 100 simple moving average (4-hours).
The decline was such that the price spiked below the $9,500 support level. It traded to a new weekly low at $9,336 and recently started a fresh upward move. The bulls managed to push the price back above the $9,500 pivot area.
Besides, there was a break above the 50% Fib retracement level of the downward move from the $10,302 high to $9,336 swing low. Still, bitcoin price is facing a couple of key hurdles near $9,940 and $10,000.
The first key resistance is near the $9,940 level and the 100 simple moving average (4-hours). It is close to the 61.8% Fib retracement level of the downward move from the $10,302 high to $9,336 swing low.
The next major resistance for bitcoin is near the $10,050 and $10,080 levels. More importantly, there is a major bearish trend line forming with resistance near $10,080 on the 4-hours chart of the BTC/USD pair.
Therefore, a clear break above the $9,940 and $10,080 levels is must for a sustained upward move. If the bulls succeed, there are high chances of a strong move above $10,500 and the price might trade to a new 2020 high.
Another Failure?
There are chances that bitcoin could fail to settle above the 100 simple moving average (4-hours) or $10,080. In the mentioned case, there might be a fresh decline below the $9,700 level.
The first key support is seen near the $10,500 level. If the price fails to stay above the $9,500 area, it could slide towards $9,000.
Technical indicators
4 hours MACD – The MACD for BTC/USD is now gaining pace in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Level – $9,700
Major Resistance Level – $10,080
