Bitcoin is likely setting up for a break above the $10,000 barrier against the US Dollar.
Many supports are forming on the downside near $9,700 and $9,500.
There is a key rising channel forming with support near $9,710 on the hourly chart of the BTC/USD pair (data feed from Kraken).
A successful close above the $10,000 barrier may perhaps initiate a massive stop run.
Bitcoin Likely To Surpass $10K
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.
Hourly MACD – The MACD is about to move back into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level, with a positive angle.
Major Support Levels – $9,700 followed by $9,500.
Major Resistance Levels – $9,850, $10,000 and $10,400. The post appeared first on NewsBTC.