BTC Is Currently Consolidating Gains and Preparing For the Next Crucial Break
Over the previous week, the BTC price started a downside correction after rising to the $10,360 zone. The decline was such that, the price broke the $10,000 support level and it even dropped below the $9,500 support. Fortunately, the $9,300 region and the 100 4-hourly simple moving average (SMA)acted as strong support to prevent further decline.
A recent low is formed close to the $9,308 level and the price is currently consolidating gains. On the way up, there was a break above the 23.6% Fib retracement level of the key decline from the $10,361 high to $9,308 low. The price even climbed above the $9,500 and $9,600 resistance levels.
Notably, there is also a key contracting triangle forming on theBTC/USD 4-hours chart, with resistance near $9,700. The 4-hours MACD for the BTC/USD pair is about to move into the bullish zone. Its 4-hours RSI (Relative Strength Index) is also currently above the 50 level. The BTC price is now well bid in a range above the $9,600 level.
On the upside, the $9,800 zone seems to be acting as a strong resistance to prevent more gains. The 50% Fib retracement level of the key decline from the $10,361 high to $9,308 low also is also acting as a barrier. If there is a clear break above thetriangle resistance and then $9,800, the price could rally towards $10,000. Any further gains could pave way for a strong uptrendtowards the $10,200 and $10,300 levels in the near term.
TryIf the BTC price breaks the triangle support zone, it could trigger a bearish reaction again below the $9,500 level. The first major support on the downside is close to the $9,400 level and the 4-hourly 100 SMA. However, the main support is near the $9,300 level, below which the bears are likely to push the pricetowards the $8,800 level.
The post BTC Is Currently Consolidating Gains and Preparing For the Next Crucial Break appeared first on Crypto Press.