In the past few sessions, there was a steady rise in bitcoin above the $9,500 resistance against the US Dollar. BTC even settled above the $9,700 level, with a convincing close above the 100 hourly simple moving average.
Finally, the price climbed above $9,800 and traded to a new 2020 high at $9,850. It is currently consolidating gains above the $9,700 support area. The last swing low was near $9,656 and the high was $9,836.
Bitcoin corrected below the 23.6% Fib retracement level of the upward move from the $9,656 low to $9,836 high. However, the bulls are protecting the $9,750 area. More importantly, there is a key rising channel forming with support near $9,710 on the hourly chart of the BTC/USD pair.
On the upside, there are short term hurdles near the $9,850 and $9,880 levels. The current structure suggests that the price is setting up for a key upside break above the $10,000 resistance area.
If there is successful break above $10,000, it could initiate a strong rally and a stop loss hunt. In the mentioned case, the bulls are likely to aim a test of $10,400 or even $10,500 in the coming sessions.
Dips Remain Supported
An initial support is near the channel at $9,700. Additionally, the 50% Fib retracement level of the upward move from the $9,656 low to $9,836 high is at $9,746.
If there is a downside break below the channel support, bitcoin price might correct lower towards the $9,600 support area. The main support on the downside is near the $9,520 and $9,500 levels, below which there is a risk of a short term trend change to bearish.