Bitcoin started a strong rise and broke the key $9,100 resistance zone.
The price is now trading close to $9,400 and it might soon attempt to clear $9,500.
There is a major bullish trend line forming with support near $9,120 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could accelerate its rise if there is a proper H4 close above $9,500 and $9,570.
Bitcoin Rises Sharply
Yesterday, we discussed how bitcoin price could gain bullish momentum if it breaks $9,000 against the US Dollar. BTC price did manage to surpass the $9,000 resistance and the 100 hourly simple moving average.
The bulls even pushed the price above the key $9,100 resistance zone. There was a break above this week’s followed bearish trend line with resistance near $8,910 on the hourly chart of the BTC/USD pair.
Bitcoin Price
Bitcoin traded as high as $9,408 and it is currently consolidating gains. An initial support on the downside is near the $9,120 level. It is close to the 23.6% Fib retracement level of the recent rise from the $8,186 low to $9,408 high.
More importantly, there is a major bullish trend line forming with support near $9,120 on the same chart. If there is a downside break below the trend line, the price could correct lower towards the $9,000 support.
On the upside, the $9,400 level is an initial resistance zone. The main resistance is near the $9,500 and $9,570 levels. If the bulls gain pace above the $9,570 resistance, the price could start a strong increase in the coming sessions. The next major hurdle for the bulls is seen near the $10,000 level.
Another Decline?
If bitcoin fails to stay above the $9,000 support, there are chances of more losses towards the $8,800 support level. It is close to the 50% Fib retracement level of the recent rise from the $8,186 low to $9,408 high.
Any further losses below the $8,800 support zone could open the doors for a larger decline towards the $8,500 support in the near term.
Technical indicators:
Hourly MACD – The MACD is slowly losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 60 level.
Major Support Levels – $9,120 followed by $9,000.
Major Resistance Levels – $9,400, $9,570 and $10,000.