Bitcoin On The Brink Of Massive Rally And Only 1 Thing Is Holding It Back
Bitcoin is climbing steadily above $8,800 and $9,000 against the US Dollar. BTC price could start a massive rally towards $10K and $11K if there is a daily close above $9,300.
Bitcoin price is gaining momentum above the $9,000 resistance area against the US Dollar.
A new 2020 high is formed near $9,185 and the price could continue to rise.
There was a break above a crucial declining channel with resistance near $8,475 on the daily chart of the BTC/USD pair (data feed from Kraken).
The pair is now facing a significant resistance near $9,300, above which it could test $10,000.
Bitcoin Price Could Revisit $10K Soon
In the past few days, there were steady gains in bitcoin above the $8,000 and $8,200 resistance levels. The recent rise gained pace after BTC surpassed the $8,500 resistance area.
The daily chart suggests that the price broke many important hurdles near $8,400 and $8,500 to enter a positive zone. The first main hurdle was the 50% Fib retracement level of the downward move from the $10,579 high to $6,423 low.
More importantly, there was a break above a crucial declining channel with resistance near $8,475 on the daily chart of the BTC/USD pair. Bitcoin price settled above the $8,500 resistance and the 100-day simple moving average.
It is now trading near the 61.8% Fib retracement level of the downward move from the $10,579 high to $6,423 low. It seems like the bulls are facing a crucial resistance near the $9,300 level (acted as a support and resistance on many occasions).
Therefore, bitcoin needs to settle above the $9,300 area to continue higher. A successful daily close above the $9,300 resistance could open the doors for another rally towards the $10,000 and $11,000 levels in the coming days.
What If BTC Fails Near $9,300?
As stated, the $9,300 resistance area holds a lot of importance. If BTC price fails to surpass $9,300, it could start a downside correction.
An initial support is near the $8,500 level (the recent breakout zone). However, the main support for the bulls and the current uptrend is near the $8,000 level. Additionally, the 100-day SMA is near the $8,000 level.
Hence, a daily close below $8,000 might lead the price towards the $7,200 and $7,000 support levels. Overall, bitcoin price must climb above $9,300 to continue higher towards $10,000 and $11,000. If not, it could correct towards $8,000 or even $7,200.
Daily MACD – The MACD is slowly gaining momentum in the bullish zone.
Daily RSI (Relative Strength Index) – The RSI for BTC/USD is slowly moving into the overbought zone.
Major Support Levels – $8,500 followed by $8,000.
Major Resistance Levels – $9,300, $10,000 and $10,550. The post appeared first on NewsBTC.