Bitcoin is surging and it settled nicely above the $8,000 resistance pivot level against the US Dollar.
The price is gaining momentum above the 100-day simple moving average and it could test $9,500.
There is a major bullish trend line forming with support at $7,400 on the daily chart of the BTC/USD pair (data feed from Kraken).
The pair could correct in the short term, but dips remain well bid near $8,000.
Bitcoin Price Surging Towards $9,500 and $10,000
Yesterday, we discussed how bitcoin price could start a pre halving rally against the US Dollar. BTC price broke a few important resistance levels near the $8,000 zone to move into a strong uptrend.
The bulls gained strength above the $8,000 level and the 100-day simple moving average. There was a break above the 61.8% Fib retracement level of the last key decline from the $10,495 swing high to $3,931 low.
Bitcoin cleared a connecting resistance trend line with resistance near $8,020 on the daily chart. It opened the doors for sharp rise and the price rallied above the $8,500 level. It tested the 76.4% Fib retracement level of the last key decline from the $10,495 swing high to $3,931 low.
Bitcoin Price
Clearly, the bulls are in control, signaling a strong rise above the $8,800 and $9,000 resistance levels. The next major resistance is near the $9,500 level (a multi-touch zone).
Any further gains above the $9,500 resistance could start a convincing upward move towards the $10,000 resistance level in the near term.
Downside Correction?
The current rise in bitcoin could face hurdles near the $9,500 resistance level. If it starts a downside correction, there are many supports waiting on the downside starting with $8,500.
The first major support is near the $8,000 level (the recent breakout zone). There is also a major bullish trend line forming with support at $7,400 on the same chart. Overall, dips remain well supported on the downside if the price corrects lower from the current levels or $9,500.
Technical indicators:
Daily MACD – The MACD is currently gaining momentum in the bullish zone.
Daily RSI (Relative Strength Index) – The RSI for BTC/USD is now in the overbought zone.
Major Support Levels – $8,500 followed by $8,000.
Major Resistance Levels – $9,000, $9,400 and $9,500.