Bitcoin price formed a strong support base above $10,000 against the US Dollar. BTC is currently correcting above $10,500, but it is likely to face a strong resistance near $10,800 and $11,000.
- Bitcoin is slowly recovering higher above the $10,400 and $10,500 resistance levels.
- The price is likely to struggle near $10,800 and the 100 simple moving average (4-hours).
- There is a key rising channel forming with support near $10,400 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair must settle above the $11,000 resistance to move into a positive zone.
Bitcoin is Showing Positive Signs
This past week, bitcoin made a few attempts to clear the $10,000 and $9,880 support levels against the US Dollar. However, BTC failed to close below $9,880 and recently formed a strong support base above $10,000.
A decent recovery wave is underway and the price already climbed above the $10,200 and $10,400 resistance levels. There was a break above the 23.6% Fib retracement level of the downward move from the $12,066 high to $9,850 swing low.
The price is now trading above the $10,500 level, but it is still well below the 100 simple moving average (4-hours). An initial resistance on the upside is near the $10,600 level. There is also a major hurdle forming near the $10,800 level and the 100 simple moving average (4-hours).
Bitcoin price breaks $10,500. Source: TradingView.com
It seems like there is a key rising channel forming with support near $10,400 on the 4-hours chart of the BTC/USD pair. If the pair continues to follow the channel, there are chances of an upside break above the $10,800 and $11,000 resistance levels.
The 50% Fib retracement level of the downward move from the $12,066 high to $9,850 swing low is also near the $10,963 level. A successful break above the channel resistance, the $11,000 barrier, and the 100 simple moving average (4-hours) is needed to start a strong increase.
Dips Supported in BTC?
If bitcoin struggles to climb above the $10,600 resistance or the 100 simple moving average (4-hours), there are chances of a downside correction.
The channel support near the $10,400 level is a key support. The main support is near the $10,000 level. A daily close below the $10,000 support could negate the chances of a steady increase in the near term.
Technical indicators
4 hours MACD – The MACD for BTC/USD is slowly moving into the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Level – $10,400
Major Resistance Level – $10,800
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