Bitcoin started a downside correction from the $9,780 swing high against the US Dollar. BTC found support near $9,600 and it is currently gaining bullish momentum for a fresh rally.
- Bitcoin is trading nicely above the $9,500 support zone and the 100 hourly simple moving average.
- A short-term downside correction seems to be over near the $9,570 level.
- There was a break above a key contracting triangle with resistance near $9,640 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could soon break the $9,700 and $9,800 resistance levels for more upsides.
Bitcoin Price Could Resume Rally
Yesterday, we saw a sharp increase in bitcoin price above the main $9,500 resistance against the US Dollar. BTC rallied above the $9,700 level and settled above the 100 hourly simple moving average.
The price traded to a new weekly high near $9,780 and started a downside correction. It broke the $9,700 level to move into a short term correction phase. However, the decline found support near $9,570 and the price remained well above the $9,500 area.
A low was formed near $9,570 and the price is currently rising. There was a break above the 23.6% Fib retracement level of the recent correction from the $9,781 high to $9,570 low. More importantly, there was a break above a key contracting triangle with resistance near $9,640 on the hourly chart of the BTC/USD pair.
Bitcoin price holding $9,500: Source:The current technical structure suggests bitcoin price could continue to rise above $9,700. Immediate resistance is near the $9,675 level. It is close to the 50% Fib retracement level of the recent correction from the $9,781 high to $9,570 low. If the bulls gain momentum above $9,670 and $9,700, the price is likely to climb above the $9,780 swing high in the near term. The next target for them may perhaps be $10,000 or $10,200.