Bitcoin Price (BTC) Rallies Sharply But Facing Significant Hurdle

  • Bitcoin price started a strong rise after trading as low as $9,637 against the US Dollar.
  • The price is trading above the $10,200 level, but it is facing hurdles near the $10,400 level.
  • There was a break above a major bearish trend line with resistance near $10,150 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The price is currently correcting lower towards the $10,150 and $10,100 support levels.

Bitcoin price is showing positive signs above the $10,100 level against the US Dollar. BTC needs to surpass the $10,400 resistance area to continue higher in the near term.

Bitcoin Price Analysis

Yesterday, there was a sharp decline in bitcoin below the $10,000 support against the US Dollar. Moreover, BTC price traded below the $9,800 support level. A new weekly low was formed at $9,637 and recently the price started a strong recovery. There was a break above the $10,000 resistance area and a close above the 100 hourly simple moving average.

It opened the doors for more gains above the $10,100 and $10,200 levels. Moreover, there was a break above a major bearish trend line with resistance near $10,150 on the hourly chart of the BTC/USD pair. The pair traded towards the $10,400 resistance area, where sellers emerged. A high was formed near $10,376 and the price is currently correcting lower. It broke the 23.6% Fib retracement level of the recent rally from the $9,637 low to $10,376 high.

On the downside, there are many supports near the $10,150 level and the 100 hourly simple moving average. The broken trend line might also provide support near $10,150. If there are more downsides, the price could test the $10,000 support area. It now coincides with the 50% Fib retracement level of the recent rally from the $9,637 low to $10,376 high.

On the upside, an immediate resistance is near the $10,300 level. However, the main resistance is near the $10,400 level. If there is an upside break above $10,400, the price could continue to rise towards the $10,500 and $10,800…

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