Bitcoin (BTC) Price Showing Positive Signs But Lacking Momentum
- Bitcoin price is up around 3% and it climbed above the $9,400 resistance against the US Dollar.
- The price is currently correcting lower after tagging the $9,600 resistance area.
- There is a key bullish trend line forming with support near $9,340 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- Both Ethereum and ripple are showing positive signs above $182 and $0.2950 respectively.
Bitcoin price jumped recently above $9,400 and $9,500 against the US Dollar. BTC price is currently correcting lower and it is likely to find support near $9,340 and $9,300.
Bitcoin Price Analysis
In the past two sessions, bitcoin started a steady rise from the $9,100 support area against the US Dollar. BTC broke the key $9,400 resistance area and settled above the 100 hourly simple moving average.
Moreover, the price rallied above the $9,500 resistance area. Finally, a high was formed near $9,600 and the price is currently correcting lower. It corrected below the $9,480 level, plus the 23.6% Fib retracement level of the recent upward move from the $9,081 low to $9,599 high.
At the outset, bitcoin is trading near the $9,400 support area. If there are more downsides, the price could test the $9,340 and $9,320 support levels (the previous resistance levels).
Besides, the 50% Fib retracement level of the recent upward move from the $9,081 low to $9,599 high is near the $9,340 level. More importantly, there is a key bullish trend line forming with support near $9,340 on the hourly chart of the BTC/USD pair.
If there is a downside break below the trend line, the price could decline below $9,300. Additionally, the next major support is near the $9,240 level and the 100 hourly simple moving average.
Any further downsides might push the price towards the $9,200 support area. Conversely, bitcoin price may perhaps rise again if it stays above $9,340 and $9,300.
An initial resistance is near the $9,480 and $9,500 levels. A successful break above the $9,500 resistance is likely to spark another rally towards the $9,600 level. The next key resistance on the upside is waiting near the $9,800 level.
Looking at the chart, bitcoin is showing many positive signs and the recent rally above $9,400 was bullish. In the short term, there could be a downside correction, but the price remains well supported near $9,340 and $9,300. The main uptrend support is near the $9,200 level, below which the price could move into a bearish zone.
Hourly MACD – The MACD is a about to move into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting lower towards the 50 level.
Major Support Levels – $9,340 followed by $9,200.
Major Resistance Levels – $9,480, $9,500 and $9,600.
Published at Tue, 05 Nov 2019 06:00:07 +0000