100-day SMA Could Ignite a Bullish Breakout for Bitcoin: Here’s Why
Bitcoin is trading in a contracting range above $9,000 against the US Dollar. BTC’s daily chart suggests that the price could rally above $9,300 as long as it is above the 100-day SMA.
- Bitcoin is holding a couple of important supports near $9,000 and $8,800.
- The price is currently facing strong barriers near $9,300 and $9,400.
- There is a crucial contracting triangle forming with resistance near $9,250 on the daily chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a sharp rally above $9,300 as long as it is above the 100-day simple moving average.
Bitcoin Price Could Restart its Rally
In the past few days, bitcoin price mostly traded with a bearish angle below the $9,500 resistance against the US Dollar. BTC even settled below the $9,300 level, but it remained well above the 100-day simple moving average.
The last swing low was formed near $8,809 before the price started a short-term upside correction. There was a break above the $9,000 and $9,200 levels. The price even broke the 50% Fib retracement level of the downward move from the $9,768 swing high to $8,809 low.
However, the upward move was capped by the $9,400 resistance level. The bulls also struggled to clear the 61.8% Fib retracement level of the downward move from the $9,768 swing high to $8,809 low.
Bitcoin price holding $9,000: Source: TradingView.com
It seems like there is a crucial contracting triangle forming with resistance near $9,250 on the daily chart of the BTC/USD pair. If there is a clear break above the triangle resistance and $9,300, the price could start a sharp upward move.
The next hurdles are $9,400 and $9,500, above which the bulls are likely to aim a retest of the main $10,000 handle in the coming days.
Chances of Downside Break?
On the downside, there is a significant support forming near $9,000, $8,800 and the 100-day simple moving average. As long as the price is above the 100-day SMA, there are chances of an upside break above $9,300.
If not, there is a risk of a nasty decline below the $8,800 support. In the mentioned case, the price may perhaps nosedive towards the $8,200 and $8,000 levels in the near future.
Technical indicators:
Daily MACD – The MACD is about to move into the bullish zone.
Daily RSI (Relative Strength Index) – The RSI for BTC/USD is now just below the 50 level.
Major Support Levels – $9,000 followed by $8,800.
Major Resistance Levels – $9,250, $9,300 and $9,500.
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, Khareem Sudlow
