Over the past few days, Bitcoin has been trading sideways between $9,000 and $9,500. The Bitcoin price is now consolidating above key support levels. The Bitcoin price is likely to start a strong rise once it convincingly settles above $9,400 and $9,500.
At the time of writing, Bitcoin is trading at $9,407.
According to analysts, the Bitcoin price is likely to get momentum if there is a clear break above the $9,400 and $9,500 level. Though the coin broke the major resistance level of $9,500 on several occasions during the last 10 days, it failed to hold on to its gains. After struggling to stay above $9,500, Bitcoin started a downside correction. It corrected lower and traded below the $9,400 and $9,350 levels. However, the price stayed above the $9,200 support and the 100-hourly SMA.
Currently, the Bitcoin price is consolidating in a contracting range above the $9,200 support. The last swing high was near $9,435 and the last swing low was near $9,278. The price is currently moving higher above the $9,400 level. Moreover, there was a break above the 23.6% Fib retracement level of the recent decline from the $9,435 high to the $9,278 low. The next major resistance is near the $9,500 area, above which Bitcoin may perhaps accelerate towards $9,600 and $9,800.
The largest cryptocurrency has been witnessing a never-ending fight between the bulls and the bears, it seems like the bulls are in control. Probably, the most reliable sign is the 200-days moving average line (MA-200). Since breaking it up during the bullish prior weekend, Bitcoin has tested it four times. Any retest of the line has ended up with a candle’s wick and reversal of the Bitcoin price.
According to technical analysts, the first level of support for the coin is near $9,200. Right below lies the 200-days moving average line – currently around $9,120. The next level of support is at $9,000, before the $8,800 support area. However, Bitcoin is still facing resistance at $9,400 – $9,500 like it did throughout the past week. In case of a breakup, we can see Bitcoin reaching the $9,800 – $10,000 zone quickly. Further resistance lies at $10,300 – $10,400.