Bitcoin price tested the $9,500 support area and recently recovered a few points. However, BTC/USD is still in a bearish zone unless it surpasses the $9,860 resistance area.
This week, the bitcoin price started a downside correction below $10,000 and $9,880 against the US Dollar. BTC to USD even broke the $9,660 support area to enter a bearish zone.
Looking at the 1-hour chart, the price traded close to the $9,500 support area and formed a new weekly low at $9,501. Recently, it started an upside correction above the $9,700 level and the 25 simple moving average (1-hours, orange).
The market data is provided by TradingView, Bitfinex.
Moreover, there was a break above the 50% Fib retracement level of the recent slide from the $9,998 high to $9,501 low. Bitcoin price is now trading near the $9,800 area.
It seems like there is a major hurdle forming for the bulls near the $9,860 and $9,880 levels. Additionally, the 76.4% Fib retracement level of the recent slide from the $9,998 high to $9,501 low is sitting near the $9,881 level to act as a resistance.
Therefore, the bitcoin price must climb above the $9,860 and $9,880 resistance levels to start a fresh increase. In the mentioned case, the bulls are likely to aim a break above the $10,000 and $10,050 levels.
Conversely, the bulls might fail to lead the price above the $9,860 and $9,880 resistance levels. In this case, the price could resume its decline. At the outset, Bitcoin is following a short term ascending channel with support near $9,760 on the 1-hour chart.
If there is a downside break below $9,760 and $9,700, BTC might revisit the key $9,500 support area in the near term.