Bitcoin Near Key Inflection Zone, $10,500 Holds The Key For Next Rally
Bitcoin price remained well supported above $9,900 and $10,000 against the US Dollar. BTC is currently recovering and approaching a major breakout zone at $10,500.
- Bitcoin is trading higher, and it surpassed the $10,200 resistance zone and he 100 hourly simple moving average.
- It is facing a major hurdle near the $10,450 and $10,500 levels.
- There is a key rising channel forming with support near $10,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a strong upward move if it closes above the $10,500 and $10,600 resistance levels.
Bitcoin Price is Recovering
Recently, there was another test of the $10,000 and $9,900 support levels by bitcoin price against the US Dollar. BTC remained well supported and the bears failed to push the price below the $9,850 swing low.
It started a decent upward move and surpassed the $10,150 and $10,200 resistance levels. There was also a close above the $10,200 level and the 100 hourly simple moving average. It is now trading near the $10,450 resistance, where the bulls seem to be struggling.
If there is a downside correction, bitcoin might find support near the $10,300 level. It is close to the 23.6% Fib retracement level of the recent upward move from the $9,859 swing low to $10,441 high.
Bitcoin price trades near $10,450. Source: TradingView.com
There is also a key rising channel forming with support near $10,300 on the hourly chart of the BTC/USD pair. If there is a downside break below the channel support, the pair could test the $10,150 support level or the 100 hourly SMA.
The 50% Fib retracement level of the recent upward move from the $9,859 swing low to $10,441 high is also near the $10,150 level. On the upside, the bulls are facing a couple of important hurdles near $10,450 and $10,500 levels.
A successful close above the $10,500 resistance level may perhaps open the doors for a larger rally. The next major resistance is near $10,600, above which the bulls might aim a test of $11,000.
Another Rejection in BTC?
If bitcoin fails to clear the $10,500 resistance, there could be another downward move. The first key support is near the channel support, followed by the 100 hourly SMA at $10,150.
The main breakdown support is still near the $10,000 and $9,900 levels. A daily close below the $9,900 level may perhaps spark a sharp decline.
Technical indicators:
Hourly MACD – The MACD is showing positive signs in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently just above the 60 level.
Major Support Levels – $10,300, followed by $10,150.
Major Resistance Levels – $10,450, $10,500 and $10,600.
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, Khareem Sudlow
