Bitcoin

Bitcoin Rebounds Sharply: Here’s Why 100 SMA Could Trigger More Gains

Bitcoin is surging and it recently tested the $ 9,400 support area against the US Dollar. BTC price is likely to continue higher towards $ 10,000 as long as it is above the 100 hourly SMA.

  • Bitcoin is showing positive signs above the $ 9,650 and $ 9,700 levels.
  • There was a sharp rebound after the price declined towards the $ 9,400 support zone
  • There was a break above a key bearish trend line with resistance near $ 9,670 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to accelerate higher towards $ 10,000 as long as it is above the 100 hourly SMA.

Bitcoin Price Could Continue Higher

In the past two sessions, there were swing moves in bitcoin price below $ 9,800 against the US Dollar. BTC declined sharply below the $ 9,600 and $ 9,500 levels, but the $ 9,400 region acted as a strong support.

A low was formed near $ 9,393 and the price recently recovered sharply. It broke the $ 9,500 and $ 9,600 resistance levels. There was a break above the 50% Fib retracement level of the recent decline from the $ 9,892 high to $ 9,393 low.

More importantly, there was a break above a key bearish trend line with resistance near $ 9,670 on the hourly chart of the BTC/USD pair. The pair is now trading nicely above the $ 9,700 level and the 100 hourly simple moving average.

Bitcoin Price

Bitcoin Price

On the upside, an initial resistance is near the $ 9,800 level or the 76.4% Fib retracement level of the recent decline from the $ 9,892 high to $ 9,393 low. If there is a clear break above the $ 9,800 resistance, the price is likely to continue higher towards the $ 9,880 and $ 10,000 resistance levels.

Any further gains above the $ 10,000 resistance zone could open the doors for a fresh monthly high above $ 10,400 in the coming sessions.

Dips Likely Supported in BTC

On the downside, there is a key support forming near the $ 9,680 level and the 100 hourly simple moving average. If the price fails to stay above the 100 hourly SMA, it could continue to slide towards the $ 9,500 support.

The main support zone is near the $ 9,400 and $ 9,300 levels, below which the bears are likely to take control and the price could decline sharply.

Technical indicators:

Hourly MACD – The MACD is currently moving nicely in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now correcting lower from the 65 level.

Major Support Levels – $ 9,680 followed by $ 9,500.

Major Resistance Levels – $ 9,800, $ 9,880 and $ 10,000.

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