Technicals Suggest Bitcoin Needs To Clear $9800 For Hopes of a Fresh Rally

Bitcoin is currently correcting higher from the $9,300 support against the US Dollar. BTC price must clear the $9,740 and $9,800 resistance levels to continue higher in the near term. Bitcoin is currently showing a few positive signs above the $9,500 and $9,600 levels. The price is likely to gain bullish momentum if it breaks the $9,740 and $9,800 resistance levels. There is a bear flag forming with resistance near $9,740 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could resume its decline if it fails to clear the $9,740 resistance zone. Bitcoin Price Facing Hurdles Yesterday, we saw a sharp U-turn in bitcoin price from well above $10,000 against the US Dollar. BTC broke many key supports near $9,800 and the 100 hourly simple moving average. It even spiked below the $9,500 support and tested the $9,300 support area. A low is formed near $9,299 and the price is currently correcting higher. It is now trading above the $9,500 pivot level. There was a break above the 23.6% Fib retracement level of the downward move from the $10,366 high to $9,299 low. Moreover, it is trading above the $9,600 level and the 100 hourly simple moving average. It seems like there is a bear flag forming with resistance near $9,740 on the hourly chart of the BTC/USD pair. The channel resistance zone is close to the recent breakdown zone at $9,740. There is also a connecting bearish trend line forming with resistance near $9,745 on the same chart. Bitcoin Price If bitcoin price clears the trend line resistance, it could test the next major resistance near $9,800. The 50% Fib retracement level of the downward move from the $10,366 high to $9,299 low is also near $9,832. If the bulls manage to clear the $9,740 and $9,800 resistance levels, there are chances of a steady rise in the coming sessions. The next key resistance zone is seen near the $10,000 level. Fresh Decline in BTC? There are chances of another downside break in bitcoin if it struggles to clear $9,740 and the trend line resistance. On the downside, the first key support is near the flag channel at $9,600. A clear break below the bear flag at $9,600, it could accelerate losses. An immediate support is at $9,500, below which there is a risk of more downsides towards the $9,300 level. Technical indicators: Hourly MACD – The MACD is slowly moving in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level. Major Support Levels – $9,600 followed by $9,500. Major Resistance Levels – $9,740, $9,800 and $9,830.

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