- Bitcoin is showing positive signs above the $9,500 and $9,600 levels against the US Dollar.
- The price jumped to a new 2020 high at $9,764 and it is currently correcting lower.
- There is a major bullish trend line forming with support near $9,460 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The current trend suggests the price is likely to continue higher towards $10,000 and $10,200.
Bitcoin Could Soon Test $10,000
Recently, there was a downside correction in bitcoin from the $9,600 area against the US Dollar. BTC traded below the $9,400 and $9,300 levels, before the bulls took a stand above $9,000.
A swing low was formed near $9,079 and the price started a fresh increase above the $9,200 resistance area. The bulls gained pace and pushed the price above the 100 hourly simple moving average and the $9,500 resistance area.
Finally, there was a break above the $9,600 resistance area and the price traded to a new 2020 high at $9,764. Bitcoin is currently correcting lower below the $9,700 level.
It traded below the 23.6% Fib retracement level of the recent rally from the $9,076 low to $9,764 high. However, the previous resistance near the $9,500 and $9,520 levels is acting as a strong support area.
More importantly, there is a major bullish trend line forming with support near $9,460 on the hourly chart of the BTC/USD pair. On the upside, there are short term hurdles near the $9,700 and $9,750 levels.
A successful break above the $9,750 level is likely to set the pace for a larger upward move. The main target could be $10,000, followed by $10,200.
Bulls Are In Control
On the downside, there are many key supports for bitcoin bulls near the $9,500 area. The next key support is seen near the $9,420 level. It coincides with the 50% Fib retracement level of the recent rally from the $9,076 low to $9,764 high.
Any further losses may perhaps lead the price towards the $9,340 level and the 100 hourly SMA, where the bulls are likely to take a stand.
Hourly MACD – The MACD is about to move back into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently rising and it is well above the 55 level.
Major Support Levels – $9,500 followed by $9,420.
Major Resistance Levels – $9,700, $9,750 and $10,000.