Bitcoin price started a fresh rise from the $9,720 swing low and surged above $10,000. BTC/USD traded to a new yearly high at $10,460 and it is currently correcting gains.
Recently, we saw a downside extension in the bitcoin price below the $10,000 level against the US Dollar. The price even broke the $9,800 level before the bulls emerged above $9,720.
Looking at the 1-hour chart, the price traded as low as $9,720 and jumped back above $10,000. Moreover, there was a break above the $10,180 resistance area and the 25 simple moving average (1-hours, orange).
The market data is provided by TradingView, Bitfinex.
During the rise, the bitcoin price even surged above the 1.236 Fib extension level of the downside correction from the $10,187 high to $9,720 low. It even spiked above the $10,400 level.
However, the bears are defending the $10,480 – $10,500 resistance area. More importantly, the price failed near the 1.618 Fib extension level of the downside correction from the $10,187 high to $9,720 low.
Bitcoin is now trading inside an ascending channel with support near $10,260 on the 1-hour chart. If there is a downside break below the channel support, the $10,180 area is likely to provide support.
Any further losses may perhaps lead the price towards the $10,100 level and the 25 simple moving average (1-hours, orange), followed by the $10,000 area.
On the upside, an initial resistance is near $10,480-$10,500 area. If there is a clear break above the $10,480-$10,500 resistance area, the price is likely to surge further.
The next major resistance is near the $10,840 level, followed by the key $11,000 handle. Any further gains are likely to lead the price towards the $11,200 level in the near term.