Bitcoin Rebounds Sharply: Here’s Why 100 SMA Could Trigger More Gains
Bitcoin is surging and it recently tested the $9,400 support area against the US Dollar. BTC price is likely to continue higher towards $10,000 as long as it is above the 100 hourly SMA.
- Bitcoin is showing positive signs above the $9,650 and $9,700 levels.
- There was a sharp rebound after the price declined towards the $9,400 support zone
- There was a break above a key bearish trend line with resistance near $9,670 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to accelerate higher towards $10,000 as long as it is above the 100 hourly SMA.
Bitcoin Price Could Continue Higher
In the past two sessions, there were swing moves in bitcoin price below $9,800 against the US Dollar. BTC declined sharply below the $9,600 and $9,500 levels, but the $9,400 region acted as a strong support.
A low was formed near $9,393 and the price recently recovered sharply. It broke the $9,500 and $9,600 resistance levels. There was a break above the 50% Fib retracement level of the recent decline from the $9,892 high to $9,393 low.
More importantly, there was a break above a key bearish trend line with resistance near $9,670 on the hourly chart of the BTC/USD pair. The pair is now trading nicely above the $9,700 level and the 100 hourly simple moving average.
On the upside, an initial resistance is near the $9,800 level or the 76.4% Fib retracement level of the recent decline from the $9,892 high to $9,393 low. If there is a clear break above the $9,800 resistance, the price is likely to continue higher towards the $9,880 and $10,000 resistance levels.
Any further gains above the $10,000 resistance zone could open the doors for a fresh monthly high above $10,400 in the coming sessions.
Dips Likely Supported in BTC
On the downside, there is a key support forming near the $9,680 level and the 100 hourly simple moving average. If the price fails to stay above the 100 hourly SMA, it could continue to slide towards the $9,500 support.
The main support zone is near the $9,400 and $9,300 levels, below which the bears are likely to take control and the price could decline sharply.
Hourly MACD – The MACD is currently moving nicely in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now correcting lower from the 65 level.
Major Support Levels – $9,680 followed by $9,500.
Major Resistance Levels – $9,800, $9,880 and $10,000.