Bitcoin

Bitcoin Recovery Runs Into Crucial Resistance, But 100 SMA Holds The Key

Bitcoin price started a decent recovery from the $ 10,139 swing low against the US Dollar. BTC gained pace above the $ 10,550 resistance, but it is facing a major hurdle near $ 10,800.

  • Bitcoin managed to stay above the $ 10,000 support and started a decent recovery.
  • The price is now trading above the $ 10,550 resistance and the 100 hourly simple moving average.
  • There was a break above a major bearish trend line with resistance near $ 10,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is currently facing a strong resistance near the $ 10,800 level (the previous support).

Bitcoin Price is Gaining Traction

After trading as low as $ 10,139, bitcoin price started a decent recovery against the US Dollar. BTC broke a few important hurdles near $ 10,400 and $ 10,550 to move into a short-term positive zone.

The recovery was such that the price settled above the $ 10,550 level and the 100 hourly simple moving average. There was also a break above a major bearish trend line with resistance near $ 10,600 on the hourly chart of the BTC/USD pair.

Bitcoin is now testing the next key resistance near the $ 10,800 level. A high is formed near $ 10,789 and the price is consolidating gains. An initial support on the downside is near the $ 10,640 level or the 23.6% Fib retracement level of the recent increase from the $ 10,139 low to $ 10,789 high.

Bitcoin Price

Bitcoin price breaks $ 10,550. Source: TradingView.com

The next major support is near the $ 10,550 level and the 100 hourly simple moving average. The 50% Fib retracement level of the recent increase from the $ 10,139 low to $ 10,789 high is also near $ 10,464 to act as a support.

On the upside, the bulls are facing a huge task near the $ 10,800 level. If they manage to clear the $ 10,800 resistance, the price is likely to accelerate higher towards the $ 11,000 and $ 11,200 levels.

Is This Just a Recovery in BTC?

If bitcoin fails to continue higher above $ 10,780 and $ 10,800, it could start a fresh decline. The first major support is seen near the $ 10,550 level and the 100 hourly SMA.

A downside break below the 100 hourly SMA might put the bulls on the back foot. In the stated case, the price could trim gains and dive back towards the $ 10,200 support.

Technical indicators:

Hourly MACD – The MACD is now losing steam in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is correcting lower and it is above the 60 level.

Major Support Levels – $ 10,640, followed by $ 10,550.

Major Resistance Levels – $ 10,780, $ 10,800 and $ 11,000.

Let’s block ads! (Why?)

Bitcoin – NewsBTC

Leave a Reply

Your email address will not be published. Required fields are marked *