Bitcoin is slowly moving higher, trading above the $ 9,100 level against the US dollar. BTC could start a strong upward move if it removes the $ 9,300 and $ 9,340 resistance levels.
- Bitcoin shows some positive signs above the $ 9,000 and $ 9,100 levels.
- The price is above the simple 100-hour moving average, but is still well below $ 9,300.
- The hourly chart of the BTC / USD pair (Kraken data feed) broke above a key bearish trendline with resistance close to $ 9,170.
- The pair lacks bullish momentum and could dive again if it doesn't break the USD 9,300 resistance.
The Bitcoin price shows recovery signs
Yesterday Bitcoin started a decent recovery wave after the low of $ 8,813 against the US dollar. BTC climbed above the $ 9,000 pivot level to enter a short-term positive zone.
The recovery wave caused the price to move above $ 9,100 and the 100-hour average. There was also a break above a key bearish trendline with resistance close to $ 9,170 on the hourly chart of the BTC / USD pair.
However, the price lacks momentum above the USD 9,200 resistance level. It is currently consolidating near the broken trend line at $ 9,170. Initial support is near the 23.6% fib retracement level of the upward move from the low of $ 8,813 to the high of $ 9,226.
Bitcoin price breaks $9,200: Source: TradingView.com
The main support is now near the $ 9,000 level and the simple 100-hour moving average. It is close to the 50% fib retracement level of the upward move from the low of $ 8,813 to the high of $ 9,226.
On the upside, the price has to exceed the main resistance levels of $ 9,300 and $ 9,340 to enter a positive zone. If the bulls are successful, there could be a strong uptrend towards resistance levels of $ 9,500 and $ 9,550.
Bearish reaction at BTC?
If Bitcoin struggles to go above $ 9,200 or $ 9,300, there is a risk of a negative reaction. On the other hand, $ 9,000 support and 100-hour SMA hold the key.
Successful completion below the $ 9,000 support level could negate the chances of an upward pause. In that case, the price will most likely drop back to $ 8,800 or even $ 8,650 in upcoming sessions.
Hourly MACD – The MACD has trouble picking up speed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD corrects towards 50.
Major support levels – $ 9,100, followed by $ 9,000.
Major resistance levels – $ 9,220, $ 9,300 and $ 9,340.