Bitcoin

Bitcoin Breaking This Confluence Resistance Could Spark a Significant Surge

Bitcoin is holding the $ 9,120 and $ 9,200 support levels against the US Dollar. However, BTC is facing a confluence of resistance near $ 9,400, above which it could start a strong rally.

  • Bitcoin is slowly rising and trading above the $ 9,200 support zone.
  • The price is trading well below the $ 9,400 resistance, but above the 100 hourly simple moving average.
  • There are two bearish trend lines forming with resistance near $ 9,320 and $ 9,380 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair must settle above both trend lines and $ 9,400 to start a strong upward move.

Bitcoin Price is Facing Hurdles

In the past few sessions, bitcoin consolidated above the $ 9,120 and $ 9,160 support levels against the US Dollar. The recent swing low was formed near $ 9,161 before BTC climbed higher.

It broke the $ 9,200 level and the 100 hourly simple moving average. The bulls pushed the price above the $ 9,300 level, but there was a lack in the bullish momentum. A high is formed near $ 9,331 and the price is currently correcting lower.

Bitcoin broke the 23.6% Fib retracement level of the recent wave from the $ 9,161 low to $ 9,331 high. It seems like there are two bearish trend lines forming with resistance near $ 9,320 and $ 9,380 on the hourly chart of the BTC/USD pair.

Bitcoin Price

Bitcoin price testing $ 9,300: Source: TradingView.com

There are many important hurdles forming for the bulls, starting with $ 9,320 and up to $ 9,400. Therefore, it won’t be easy for them to gain strength. If they succeed in clearing both trend lines and $ 9,400, there are chances of a sustained upward move.

In the mentioned case, there are high chances of an upside break above the $ 9,500 resistance level. The next key hurdles are near the $ 9,600 and $ 9,800 levels.

Fresh Drop in BTC

The first major support is near the $ 9,250 level, the 100 hourly SMA, and the 50% Fib retracement level of the recent wave from the $ 9,161 low to $ 9,331 high.

If bitcoin fails to stay above the $ 9,250 support, it could continue to move down towards the $ 9,200 support. The main uptrend support is still near the $ 9,120 level, below which the bears are likely to take control in the coming sessions (as discussed in the weekly analysis).

Technical indicators:

Hourly MACD – The MACD is slowly moving in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 50 level.

Major Support Levels – $ 9,200, followed by $ 9,120.

Major Resistance Levels – $ 9,320, $ 9,380 and $ 9,400.

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Bitcoin – NewsBTC

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