Bitcoin Flirts With Key Resistance: Here’s Why 100 SMA Could Spark New Rally
Bitcoin is consolidating above the $9,100 level against the US Dollar. BTC could start a strong increase towards $9,500 as long as it is above the 100 hourly SMA.
- Bitcoin is currently trading in a contracting range below the $9,300 resistance.
- The price is holding the $9,000 support and trading above the 100 hourly simple moving average.
- There is a crucial contracting triangle forming with resistance near $9,160 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could either rally above $9,200 or it might start a fresh decline below $9,000.
Bitcoin Price is Approaching Next Break
In the past few sessions, bitcoin remained well bid above the $9,000 support against the US Dollar. BTC also settled above the $9,100 level and the 100 hourly simple moving average.
However, the bulls are facing a few important hurdles near $9,200, $9,300 and $9,320. The recent high was formed near $9,225 before the price starting a downside correction. It broke the 23.6% Fib retracement level of the upward move from the $8,813 low to $9,225 swing high.
The decline was limited below the $9,100 level and the 100 hourly simple moving average. It seems like there is a crucial contracting triangle forming with resistance near $9,160 on the hourly chart of the BTC/USD pair.
Bitcoin price holding 100 hourly SMA: Source: TradingView.com
If there is an upside break above the triangle resistance, the price could start a decent increase. An immediate resistance could be the $9,225 swing high. The main resistance is still near $9,300.
A proper close above the $9,300 and $9,320 resistance levels will most likely open the doors for a larger upward move in the coming sessions. The next crucial resistance is near the $9,500 and $9,550 levels.
Downside Break in BTC?
On the downside, the triangle support is at $9,100 and the 100 hourly simple moving average. If bitcoin breaks the 100 SMA, the bears are likely to gain momentum.
The next support is near the $9,000 level or the 50% Fib retracement level of the upward move from the $8,813 low to $9,225 swing high. A downside break below the $9,000 support may perhaps push the price towards the $8,800 support level.
Technical indicators:
Hourly MACD – The MACD is struggling to gain momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is attempting a break above the 50 level.
Major Support Levels – $9,100, followed by $9,000.
Major Resistance Levels – $9,160, $9,225 and $9,300.
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Aayush Jindal, Khareem Sudlow