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Bitcoin Price Analysis: BTC Consolidating Above Key Support

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  • Bitcoin price corrected lower after tagging the $10,550 resistance area against the US Dollar.
  • The price is currently consolidating above the key $8,900 and $9,000 support levels.
  • There is a connecting bullish trend line forming with support near $9,120 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair is likely to rise again as long as there is no close below the $9,100 and $9,000 supports.

Bitcoin price is trading with a positive bias above $9,000 against the US Dollar. BTC could face resistance near $9,725 if it climbs higher in the near term.

Bitcoin Price Analysis

This past week, bitcoin price started a downside correction after tagging the $10,550 resistance against the US Dollar. BTC corrected lower below the $10,000 and $9,725 support levels.

Moreover, there was a break below the $9,500 support, but the price stayed above the 55 simple moving average (4-hours). Finally, there was a break below the $9,000 support and the price traded as low as $8,915.

Later, the price climbed back above the $9,400 and $9,500 levels. Besides, there was a break above the 50% Fib retracement level of the downside correction from the $10,541 high to $8,915 low.

However, the price struggled to gain strength above the $9,725. More importantly, it failed near the 61.8% Fib retracement level of the downside correction from the $10,541 high to $8,915 low. As a result, there was a fresh decline and the price tested the $9,000 support.

At the moment, the price is consolidating gains above the $9,000 and $9,120 support levels. Additionally, there is a connecting bullish trend line forming with support near $9,120 on the 4-hours chart of the BTC/USD pair.

If there is a downside break below the trend line, bitcoin could test the $9,000 support area. The main support is near the $8,900 area, below which there is a risk of another bearish wave. The next key support is near the $8,500 and $8,460 levels.

On the upside, an initial resistance is near the $9,540 area. The main resistance is near the $9,725 level, above which the price could rise steadily towards $10,000 and $10,550 in the near term.

Bitcoin Price
Bitcoin Price

Looking at the chart, bitcoin price is currently consolidating above key supports near $9,100. As long as there is no daily close below $9,000, the price is likely to start a decent upward move towards $9,725 and $10,000.

Technical indicators

4 hour MACD – The MACD is struggling to gain momentum in the bullish zone.

4 hour RSI (Relative Strength Index) – The RSI is currently stable above the 50 level, with positive signs.

Key Support Levels – $9,120 and $9,000.

Key Resistance Levels – $9,400, $9,500 and $9,725.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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