Bitcoin Hits $9,400 In Vertical Rally, But It’s At Risk of A Violent Pullback For This Key Reason

Bitcoin extended its rally above the $9,200 resistance against the US Dollar. BTC tagged the $9,400 area and now it could correct lower towards $8,800 or $8,500. Bitcoin price is approaching a couple of key resistances near $9,500 against the US Dollar. There could be a short term downside correction from $9,400 or $9,500 in the coming sessions. Yesterday’s major bullish trend line is still active with support near $9,040 on the hourly chart of the BTC/USD pair (data feed from Kraken). Ethereum is lagging, but it could rally if there is a clear break above the $180 resistance. Bitcoin Price Approaching Key Resistance Yesterday, we saw a strong rise in bitcoin above the $9,000 resistance. We even discussed the chances of more upsides towards $9,500, considering a successful close above the $9,000 level and the 100 hourly simple moving average. BTC price did continue higher above the $9,200 resistance and a connecting bearish trend line on the hourly chart. Finally, the price tested the $9,400 area. A new 2020 high is formed near $9,426 and the price is currently consolidating gains. It is testing the 23.6% Fib retracement level of the recent rally from the $8,874 low to $9,426 high. On the upside, an initial resistance is near the $9,400 level. However, the main resistance is near the $9,500 level, where bitcoin bulls need to be very careful. If there is a strong rejection near $9,500, the price could start a substantial downside correction. The first key support on the downside is near the $9,150 level. Besides, the 50% Fib retracement level of the recent rally from the $8,874 low to $9,426 high is near $9,150. More importantly, yesterday’s major bullish trend line is still active with support near $9,040 on the hourly chart of the BTC/USD pair. Bitcoin Price Therefore, a downside break below $9,000 might lead bitcoin price towards the $8,800 support area or the 100 hourly simple moving average. What If BTC Surges Above $9,500? We cannot discard the fact that BTC bears might fail to protect $9,500. In the mentioned case, the price is likely to surge towards the $10,000 handle. Any further upsides could open the doors for a larger upward move towards the $11,200, $11,500 and $12,000 levels in the coming days. Technical indicators: Hourly MACD – The MACD is slowly losing momentum in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting from the 75 level. Major Support Levels – $9,150 followed by $9,000. Major Resistance Levels – $9,400, $9,425 and $9,500. The post appeared first on NewsBTC.

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