Bitcoin Above $10,200 Make Case For Larger Rally In Steep Short-Term Reversal

Bitcoin Price
Bitcoin Above Make Case For Larger Rally In Steep

Bitcoin started a sharp increase above $9,800 and $10,000 against the US Dollar. BTC is currently consolidating and it could soon rally above $10,200 for the next bullish wave.

  • Bitcoin price is showing positive signs above the $10,000 pivot level against the US Dollar.
  • A new intraday high is formed near $10,279 and the price is currently correcting lower.
  • There is a key bearish trend line forming with resistance near $10,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • Ethereum jumped more than 5% and surged above the $275 resistance area.

Bitcoin Could Rally Towards $10,500 and $11,000

Yesterday, we saw a new weekly low in bitcoin price at $9,483 against the US Dollar. Later, BTC price started a decent upward move above the $9,700 and $9,800 resistance levels.

The bulls gained pace above a connecting bearish trend line, $10,000, and the 100 hourly simple moving average. As a result, the price traded towards the $10,300 level and a new intraday high is formed near $10,279.

It is currently correcting lower below $10,200. Besides, it is testing the 23.6% Fib retracement level of the recent rise from the $9,617 low to $10,279 high. However, there are many supports on the downside near $10,100 and $10,080.

On the upside, the $10,200 level is a key hurdle for bitcoin. Additionally, there is a key bearish trend line forming with resistance near $10,200 on the hourly chart of the BTC/USD pair.

Therefore, the price must settle above the $10,200 resistance area to continue higher in the near term. In the mentioned case, the bulls are likely to aim a break above the main $10,500 resistance area. If they succeed, the price could even test the $11,000 resistance area in the near term.

What if BTC Fails Again?

If bitcoin fails to surpass the $10,200 resistance area and the trend line, it could resume its decline. The first major support is near the $10,000 area. The next one is near the $9,950 level since it is the 50% Fib retracement level of the recent rise from the $9,617 low to $10,279 high.

The last line of defense is near the $9,900 level and the 100 hourly SMA. Any further losses might open the doors for a larger downward move towards the $9,650 and $9,500 levels.

Technical indicators:

Hourly MACD – The MACD is slowly moving back into the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is correcting lower towards the 50 level.

Major Support Levels – $10,000 followed by $9,950.

Major Resistance Levels – $10,200, $10,400 and $10,500.

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