Bitcoin is gaining momentum — A Brief Technical Analysis

Bitcoin is gaining bullish momentum and it broke the $9,800 resistance zone against the US Dollar. BTC price is likely to continue higher if it settles above the $10,000 resistance zone.

  • Bitcoin is slowly moving higher and it is trading above the $9,800 and $9,720 support levels.
  • A successful daily close above the $10,000 level could spark a sharp rise in the near term.
  • There was a break above a key contracting triangle with resistance near $9,780 on the hourly chart of the BTC/USD pair.
  • There might be a short term correction, but the bulls are likely to protect $9,800 or $9,720.

After consolidating in a range for many sessions, bitcoin price spiked above the $9,800 resistance against the US Dollar. BTC gained momentum above the $9,880 level and settled above the 100 hourly simple moving average.

During the rise, there was a break above a key contracting triangle with resistance near $9,780 on the hourly chart of the BTC/USD pair. It opened the doors for more gains above $9,950 level, but the bulls are still struggling to gain strength above the $10,000 resistance zone.

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A high is formed near the $9,998 level and the price is currently correcting lower. It tested the $9,920 level or the 23.6% Fib retracement level of the recent surge from the $9,680 low to $9,998 high.

The first key support is seen near the $9,840 level. It is close to the 50% Fib retracement level of the recent surge from the $9,680 low to $9,998 high. On the upside, the price is facing a huge hurdle near the $10,000 level.

If there is a successful daily close above the $10,000 resistance, the price might rise steadily in the coming sessions. The next key resistance is near the $10,500 level, above which the bulls are likely to aim a test of the $11,200 level.

If bitcoin fails to continue above the $10,000 resistance, it could correct lower. The main support is near the $9,800 level (the recent breakout zone).

The next major support is near the $9,720 level and the 100 hourly simple moving average, below which there is a risk of a sharp decline towards the $9,500 level in the near term.

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