- Bitcoin price rallied sharply towards the $9,500 level before correcting lower against the US Dollar.
- The price tested the $9,000 support level and it is currently setting up for more gains.
- There is an ascending channel forming with support near $9,000 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair could accelerate higher once it clears the $9,300 and $9,450 resistance levels.
Bitcoin price is trading in a bullish zone above the $9,000 support against the US Dollar. BTC is likely to surge above $9,500 and $10,000 if the bulls remain in action above $9,000.
Bitcoin Price Analysis
In the past few days, bitcoin price gained strong bullish momentum after it broke $8,000 against the US Dollar. The BTC/USD pair surged above the $8,500 resistance and the 55 simple moving average (4-hours). It opened the doors for more gains and the price rallied above the $9,000 resistance. Finally, the price traded towards the $9,500 level and a new yearly high was formed at $9,475.
Recently, the price started a downside correction below $9,350 and $9,200. There was a break below the $9,000 level, but dips were limited. A swing low was formed at $8,917 and the price is currently gaining bullish momentum. It is trading well above the $9,000 level and 23.6% Fib retracement level of the downward move from the $9,475 high to $8,917 low.
Moreover, there is an ascending channel forming with support near $9,000 on the 4-hours chart of the BTC/USD pair. The pair is currently facing resistance near the $9,200 level. It represents the 50% Fib retracement level of the downward move from the $9,475 high to $8,917 low. If there is an upside break, the price could test the next resistance near the $9,300 level.
A successful break above the $9,300 level could start a fresh increase. In the mentioned scenario, the price is likely to clear the $9,400 and $9,500 resistance levels. If the bulls remain in action, the price is likely to clear the $9,800 and $10,000 levels.
Looking at the chart, bitcoin price is clearly trading in a strong uptrend above $9,000 and well above the 55 simple moving average (4-hours). As long as there is no close below $9,000, there could be strong gains above the $9,300 and $9,400 levels in the coming sessions. Conversely, a daily close below $9,000 might call for a downside correction towards the $8,600 level.
Technical indicators
4 hour MACD – The MACD is gaining momentum in the bullish zone.
4 hour RSI (Relative Strength Index) – The RSI is currently well above the 50 level, with a bullish angle.
Key Support Levels – $9,000 and $8,600.
Key Resistance Levels – $9,200, $9,300 and $9,500.
