Bitcoin climbed to a new 2-month high at $10,390 before starting a consolidation phase.
The price seems to be losing bullish momentum, but it is well above the 100-day simple moving average.
There is a crucial bullish trend line forming with support near $9,300 on the daily chart of the BTC/USD pair (data feed from Kraken).
Ethereum is also showing positive signs, but it facing a major resistance near the $250 level.
Bitcoin Facing Uphill Task
In the past few days, there was a steady rise in bitcoin price above the $9,000 level resistance against the US Dollar. BTC price extended its rise above the $10,000 level and settled well above the 100-day simple moving average.
It traded to a new 2-month high at $10,390 and recently corrected lower. There was a break below the $10,200 and $10,000 levels. It even corrected below the 50% Fib retracement level of the upward move from the $8,655 swing low to $10,390 high.
However, there is a strong support forming near the $9,300 level. There is also a crucial bullish trend line forming with support near $9,300 on the daily chart of the BTC/USD pair. The trend line is close to the 61.8% Fib retracement level of the upward move from the $8,655 swing low to $10,390 high.
Bitcoin Price
If bitcoin fails to stay above the trend line, it could start a substantial downside correction. The next key support is near the $9,000 level, below which it could continue lower towards the $8,655 swing low in the coming days.
Any further losses could lead the price towards $8,250 or the 1.236 Fib extension level of the upward move from the $8,655 swing low to $10,390 high.
Bullish Break above $10,500?
On the upside, an initial hurdle for the bulls is near the $10,000 level. If bitcoin settles above the $10,000 level, it could continue to rise.
The main resistance is near the $10,500 level, above which the price is likely to gain 8%-12% in the near term. The next major hurdle could be near the $11,200 level.
Technical indicators:
Daily MACD – The MACD is slowly losing momentum in the bullish zone.
Daily RSI (Relative Strength Index) – The RSI for BTC/USD is still well above the 50 level.
Major Support Levels – $9,300 followed by $9,000.
Major Resistance Levels – $10,000, $10,500 and $11,200.