Bitcoin is consolidating against the U.S. dollar above the $ 9,100 level. BTC could see a sharp surge towards $ 9,500 as long as it is above the 100-hour SMA.
- Bitcoin is currently trading in a contraction range below the USD 9,300 resistance.
- The price keeps supporting $ 9,000 and trading above the 100 hour simple moving average.
- A crucial contraction triangle forms on the hourly chart of the BTC / USD pair (Kraken data feed) with a resistance close to USD 9,160.
- The pair could either rise above $ 9,200 or see a new decline below $ 9,000.
The Bitcoin price is approaching the next break
In recent sessions, Bitcoin has remained well above the $ 9,000 support against the US dollar. BTC was also above the $ 9,100 level and the simple moving average of 100 hours.
However, the bulls face some major hurdles near $ 9,200, $ 9,300 and $ 9,320. The recent high was near USD 9,225 before the price started a downward correction. It broke the 23.6% fib retracement level of the upward move from the low of $ 8,813 to the high of $ 9,225.
The decline was limited below the $ 9,100 level and the simple 100-hour moving average. A crucial contraction triangle appears to form on the hourly chart of the BTC / USD pair, with resistance close to USD 9,160.
Bitcoin price holding 100 hourly SMA: Source: TradingView.com
If there is an upward break above the triangular resistance, the price could start a decent rise. An immediate resistance could be the swing high of $ 9,225. The main resistance is still $ 9,300.
A decent close above the resistance levels of $ 9,300 and $ 9,320 will most likely open the doors to a major upward movement in the coming sessions. The next key resistance is near the $ 9,500 and $ 9,550 levels.
Down break at BTC?
On the other hand, the triangle support is $ 9,100 and the simple moving average of 100 hours. If Bitcoin breaks the 100 SMA, the bears are likely to gain momentum.
The next support is near the $ 9,000 or 50% fib retracement level of the upward move from $ 8,813 to $ 9,225 high. A break below support of $ 9,000 could push the price towards the support level of $ 8,800.
Hourly MACD – The MACD is struggling to gain momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is trying to break above the 50 level.
Major support levels – $ 9,100, followed by $ 9,000.
Major resistance levels – $ 9,160, $ 9,225 and $ 9,300.