Bitcoin is trading in a contracting range above $ 9,000 against the US Dollar. BTC’s daily chart suggests that the price could rally above $ 9,300 as long as it is above the 100-day SMA.
- Bitcoin is holding a couple of important supports near $ 9,000 and $ 8,800.
- The price is currently facing strong barriers near $ 9,300 and $ 9,400.
- There is a crucial contracting triangle forming with resistance near $ 9,250 on the daily chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a sharp rally above $ 9,300 as long as it is above the 100-day simple moving average.
Bitcoin Price Could Restart its Rally
In the past few days, bitcoin price mostly traded with a bearish angle below the $ 9,500 resistance against the US Dollar. BTC even settled below the $ 9,300 level, but it remained well above the 100-day simple moving average.
The last swing low was formed near $ 8,809 before the price started a short-term upside correction. There was a break above the $ 9,000 and $ 9,200 levels. The price even broke the 50% Fib retracement level of the downward move from the $ 9,768 swing high to $ 8,809 low.
However, the upward move was capped by the $ 9,400 resistance level. The bulls also struggled to clear the 61.8% Fib retracement level of the downward move from the $ 9,768 swing high to $ 8,809 low.
Bitcoin price holding $ 9,000: Source: TradingView.com
It seems like there is a crucial contracting triangle forming with resistance near $ 9,250 on the daily chart of the BTC/USD pair. If there is a clear break above the triangle resistance and $ 9,300, the price could start a sharp upward move.
The next hurdles are $ 9,400 and $ 9,500, above which the bulls are likely to aim a retest of the main $ 10,000 handle in the coming days.
Chances of Downside Break?
On the downside, there is a significant support forming near $ 9,000, $ 8,800 and the 100-day simple moving average. As long as the price is above the 100-day SMA, there are chances of an upside break above $ 9,300.
If not, there is a risk of a nasty decline below the $ 8,800 support. In the mentioned case, the price may perhaps nosedive towards the $ 8,200 and $ 8,000 levels in the near future.
Daily MACD – The MACD is about to move into the bullish zone.
Daily RSI (Relative Strength Index) – The RSI for BTC/USD is now just below the 50 level.
Major Support Levels – $ 9,000 followed by $ 8,800.
Major Resistance Levels – $ 9,250, $ 9,300 and $ 9,500.