Bitcoin is trading nicely above the $9,100 and $9,200 support levels against the US Dollar. BTC is forming a crucial breakout pattern and it must break $9,400 for a sustained upward move.
- Bitcoin is trading above the key $9,120 support level and the 100 simple moving average (4-hours).
- The price is facing a strong resistance near the $9,400 and $9,500 levels.
- There is a crucial breakout pattern forming with resistance near $9,380 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair must settle above the $9,400 and $9,500 levels for a strong rally.
Bitcoin is Facing Major Hurdles
This past week, bitcoin made an attempt to surpass the main $9,500 resistance levels against the US Dollar, but it failed. BTC formed a weekly high at $9,480 and later started a downside correction.There was a break below the $9,400 and $9,300 support levels. The price even broke the 50% Fib retracement level of the upward move from the $8,912 low to $9,480 high. Finally, the price spiked below the $9,200 support and the 100 simple moving average (4-hours).
BTC tested the main $9,120 support area, where the bulls appeared. It seems like the 61.8% Fib retracement level of the upward move from the $8,912 low to $9,480 high acted as a strong support.
Bitcoin price holding $9,200: Source:More importantly, there is a crucial breakout pattern forming with resistance near $9,380 on the 4-hours chart of the BTC/USD pair. The pair is currently rising and trading well above the $9,200 and the 100 SMA.
On the upside, an initial resistance is $9,350 level. The first major resistance is near the triangle resistance and $9,400. A successful break and close above $9,400 will most likely increase the chances of a sustained upward move above the $9,500 resistance. If the bulls succeed, the price might climb towards the $9,600 and $9,800 levels.