Bitcoin Near Key Inflection Zone, $10,500 Holds The Key For Next Rally

Bitcoin price remained well supported above USD 9,900 and USD 10,000 against the US dollar. BTC is currently on the mend and approaching a major USD 10,500 escape zone.

  • Bitcoin is trading higher, and it surpassed the USD 10,200 resistance zone and its 100 hourly simple moving average.
  • It is facing a major hurdle near the USD 10,450 and USD 10,500 levels.
  • A major bullish channel is forming with support near USD 10,300 on the hourly chart of the BTC / USD pair (Kraken data feed).
  • The pair could start a strong upward move as it closes above the USD 10,500 and USD 10,600 resistance levels.

Bitcoin price is recovering

Recently, there was another test of the USD 10,000 and USD 9,900 per bitcoin price support levels against the US dollar. BTC remained well supported and the bears failed to push the price below the swing low of USD 9,850.

It started a decent upward move and surpassed the USD 10,150 and USD 10,200 resistance levels. There was also a closing price above the $ 10,200 level and the 100-hour simple moving average. It is now trading near the USD 10,450 resistance where the bulls appear to be struggling.

If there is a downside correction, bitcoin could find support near the USD 10,300 level. It is close to the 23.6% Fib retracement level of the recent upward move from the $ 9,859 swing low to the $ 10,441 high.

Bitcoin price trades near $10,450. Source: TradingView.com

A significant bullish channel is also forming with support near USD 10,300 on the hourly chart of the BTC / USD pair. If there is a downside break below channel support, the pair could test the USD 10,150 support level or the 100 hourly SMA.

The 50% Fib retracement level of the recent upward move from the $ 9,859 swing low to $ 10,441 high is also close to the $ 10,150 level. On the upside, the bulls are facing some key hurdles near USD 10,450 and USD 10,500 levels.

A successful close above the USD 10,500 resistance level could perhaps open the doors for a bigger rally. The next big resistance is near USD 10,600, above which the bulls could aim a test of USD 11,000.

Another rejection in BTC?

If bitcoin fails to clear the USD 10,500 resistance, another downward move could occur. The first major support is near the channel support, followed by the 100 hourly SMA at $ 10,150.

The main breakdown support is still near the USD 10,000 and USD 9,900 levels. A daily close below the $ 9,900 level could cause a sharp drop.

Technical indicators:

Hourly MACD – The MACD is showing positive signs in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is currently just above the 60 level.

Key Support Levels – USD 10,300, followed by USD 10,150.

Key Resistance Levels – USD 10,450, USD 10,500 and USD 10,600.