Technicals Point Towards Bitcoin Surge To $10K Despite Some Roadblocks
Bitcoin extended its rise above the $9,600 resistance level against the US Dollar. BTC is currently correcting gains, but it is likely to continue higher as long as it is above $9,500.
- Bitcoin traded further higher above $9,600 and formed a new weekly high at $9,676.
- The price is currently correcting lower below $9,600, but it is well above the 100 hourly simple moving average.
- There is a crucial bullish trend line forming with support near $9,510 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could is likely to resume its upside as long as it is above $9,500.
Bitcoin Price Settles Above $9,500
After a successful break above $9,500, bitcoin extended its rally above the $9,600 level against the US Dollar. BTC even broke the $9,650 level and settled well above the 100 hourly simple moving average.
It traded to a new monthly high at $9,676 and it is currently correcting lower. There was a break below the $9,600 level, plus the 23.6% Fib retracement level of the recent upward move from the $9,465 swing low to $9,676 high.
The price is now approaching the $9,550 support zone (the recent breakout area). It is close to the 50% Fib retracement level of the recent upward move from the $9,465 swing low to $9,676 high. More importantly, there is a crucial bullish trend line forming with support near $9,510 on the hourly chart of the BTC/USD pair.
As long as the price is above the trend line support, the price could resume its upside above the $9,600 level. An initial hurdle is near the $9,650 level, above which the price might climb towards $9,800. The main target for the bulls in the coming sessions may probably be $10,000.
Dips Likely Supported in BTC
If bitcoin corrects lower, the trend line support and $9,500 might play a major role. If there is a break below the trend line support, the price could continue to move down towards the $9,420 support area.
Any further losses may perhaps open the doors for a test of the $9,350 level or the 100 hourly simple moving average. The next major support is near the $9,300 level.