- Bitcoin price is currently consolidating gains above the $8,520 pivot level against the US Dollar.
- It is currently facing a major resistance near the $9,100 and $9,200 levels.
- There is a major contracting triangle forming with resistance near $9,110 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair could start a strong rally if there is a clear break above $9,100 and $9,200.
Bitcoin price is showing bullish signs above $8,800 and $8,520 against the US Dollar. BTC is likely to accelerate higher once it clears the $9,200 resistance.
Bitcoin Price Analysis
After a strong rally, bitcoin price started a downside correction from the $9,400 swing high against the US Dollar. BTC corrected lower below $9,200 and $9,000, but it remained stable in a positive zone.
The price remained well bid above the $8,400 support and the 55 simple moving average (4-hours). The last swing low was formed near $8,548 and the price is currently consolidating gains above the $8,520 pivot level.
The recent swing high was at $9,128 and the price is currently trading just above $9,000. An initial support is near the $8,840 level. It is close to the 50% Fib retracement level of the recent move from the $8,548 swing low to $9,128 high.
Moreover, there is a major contracting triangle forming with resistance near $9,110 on the 4-hours chart of the BTC/USD pair. If the pair breaks the triangle resistance, it could attempt an upside break above the $9,200 resistance zone.
If the bulls succeed in clearing the $9,200 resistance, it could continue to rise above the $9,400 and $9,500 resistance levels. The next major hurdle above the $9,500 level is at $9,880 and $10,000.
Conversely, the first major support on the downside is near the $8,680 level. It coincides with the 76.4% Fib retracement level of the recent move from the $8,548 swing low to $9,128 high.
If there is a downside break below the triangle support, there is a risk of a bearish break below the $8,500 and $8,400 support levels in the near term.
Looking at the chart, bitcoin price is clearly trading in a bullish zone above the $8,680 and $8,500 levels. As long as there is no close below $8,500, the price is likely to rise further above the $9,200 level.
Technical indicators
4 hours MACD – The MACD is now gaining pace in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI is currently well above the 50 level.
Key Support Levels – $8,680 and $9,200.
Key Resistance Levels – $9,100, $9,200 and $9,500.
