Bitcoin gained traction above the $9,300 and $9,500 resistance levels.
The price traded as high as $9,624 and it is currently correcting lower.
There is a major ascending channel forming with support near $9,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could correct further, but dips are likely to remain supported near $9,350 and $9,300.
Bitcoin Price Turns Green
Yesterday, we discussed the chances of a strong increase in bitcoin price if it clears the $9,300 resistance against the US Dollar. BTC price did break the $9,300 resistance and it even surged above the $9,500 level.
The upward move was strong as the price spiked above the $9,600 level and settled above the 100 hourly simple moving average. The price traded as high as $9,624 and it is currently correcting lower.
It is testing the 23.6% Fib retracement level of the recent rally from the $9,108 low to $9,624 high. On the downside, there are many supports near the $9,400 and $9,350 levels. There is also a major ascending channel forming with support near $9,350 on the hourly chart of the BTC/USD pair.
The channel support is close to the 50% Fib retracement level of the recent rally from the $9,108 low to $9,624 high. The main support is now near the $9,300 level (the recent breakout zone).
If the price breaks the channel support, the bulls are likely to defend the main $9,300 support. Any further losses may perhaps lead the price towards the $9,200 and $9,100 support levels in the near term.
More Gains in BTC?
As long as bitcoin is above the $9,300 support zone, it is likely to continue higher. An initial resistance is near the $9,600 and $9,650 levels.
The first major resistance on the upside is near the $9,800 level. If the bulls clear the $9,800 resistance, the price could continue to rise towards the $9,950 and $10,000 resistance levels in the coming sessions. Any further gains might lead the price towards $10,200.
Hourly MACD – The MACD is slowly reducing its current bullish slope.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 60 level.
Major Support Levels – $9,350 followed by $9,300.
Major Resistance Levels – $9,650, $9,800 and $10,000.