Bitcoin Topside Bias Vulnerable Unless It Surges Past $10,500
Bitcoin price broke the $10,500 resistance, but it struggled to settle above it against the US Dollar. BTC is currently holding the $10,200 support, below which the bears could gain strength.
- Bitcoin is currently facing hurdles near the $10,400 and $10,500 resistance levels.
- It is trading near the 100 hourly simple moving average and well above the $10,200 support.
- There was a break below a major bullish trend line with support near $10,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair must gain momentum above the $10,500 resistance to continue higher towards $11,000.
Bitcoin Price is Facing Hurdles
In the past two days, bitcoin price recovered above the $10,400 level against the US Dollar. BTC even broke the $10,500 resistance and settled above the 100 hourly simple moving average.
However, the bulls failed to gain strength above $10,500. A high was formed near $10,573 and the price trimmed most its gains. It broke the $10,400 level and the 100 hourly SMA. There was also a break below a major bullish trend line with support near $10,350 on the hourly chart of the BTC/USD pair.
Bitcoin price traded close to the $10,200 support and low is formed near $10,215. The price is currently correcting higher and trading above $10,300. There was a break above the 23.6% Fib retracement level of the recent decline from the $10,573 high to $10,215 low.
Bitcoin price trades below $10,400. Source: TradingView.com
It is now trading near the 100 hourly simple moving average and well above the $10,200 support. On the upside, an initial resistance is near the $10,400 level. It is close to the 50% Fib retracement level of the recent decline from the $10,573 high to $10,215 low.
The next major resistance is near the $10,500 level. A successful close above the $10,500 resistance level is must for upside continuation. The next major resistance is near $10,800, followed the key $11,000 barrier.
Fresh Decline in BTC?
If bitcoin fails to clear the $10,400 or $10,500 resistance, there is a risk of a downside break. An initial support is near the $10,250 level. The next major support is near the $10,200 level (the previous breakout zone).
A close below the $10,200 support could lead the price towards the $10,000 support. Any further losses might put a lot of pressure on the bulls and the price could dive towards $9,500.
Technical indicators:
Hourly MACD – The MACD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently close to the 50 level.
Major Support Levels – $10,250, followed by $10,200.
Major Resistance Levels – $10,400, $10,500 and $10,600.
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Aayush Jindal, Khareem Sudlow