Bitcoin is trading in a positive zone above the $9,640 and $9,600 support levels.
The bulls are likely aiming an upside break above the $9,880 resistance zone.
There is a key bearish trend line forming with resistance near $9,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
A downside break below the 100 hourly SMA could start a major decline to $9,500 or $9,300.
Bitcoin Price Stuck In A Range
After a strong recovery wave, bitcoin price faced a strong resistance near the $9,880 level against the US Dollar. BTC started trading in a range below the $9,880 level and it seems to be preparing for the next major move.
There was a break below the $9,720 level, plus the 23.6% Fib retracement level of the upward move from the $9,389 low to $9,811 high. However, the $9,640 level and the 100 hourly simple moving average are acting as strong supports.
On the upside, there is a major hurdle forming near the $9,800 and $9,880 levels. There is also a key bearish trend line forming with resistance near $9,800 on the hourly chart of the BTC/USD pair.
Bitcoin Price
If bitcoin clears the trend line resistance, there are chances of a sharp rally above the $9,880 resistance. The next major resistance is near the $10,000 level, above which the bulls are likely to aim a test of the $10,500 resistance zone in the near term. Any further gains could lead the price towards the $11,200 barrier.
Bearish Move in BTC?
On the downside, there is a range support forming near the $9,640 level and the 100 hourly simple moving average. If there is a bearish break below the 100 hourly SMA, the price could test the $9,600 level.
The 50% Fib retracement level of the upward move from the $9,389 low to $9,811 high is near the $9,600 level to act as a support. Any further losses may perhaps put a lot of pressure on the bulls and the price might decline further towards the $9,500 support or $9,400.
Technical indicators:
Hourly MACD – The MACD is likely to gain strength in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently struggling to stay above the 50 level.
Major Support Levels – $9,640 followed by $9,500.
Major Resistance Levels – $9,800, $9,880 and $10,000.