Bitcoin Could Recover Above $10,500 As Double Bottom Pattern Emerges
Bitcoin price retested the $9,900 zone against the US Dollar. BTC seems to be forming a double bottom pattern near $9,900 and it could start a decent increase above $10,500.
- Bitcoin bounced back above $10,200 after it retested the $10,000 and $9,900 levels.
- The price is now trading nicely above $10,300 and the 100 hourly simple moving average.
- There was a break above a key declining channel with resistance near $10,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to continue higher as long as it is above the $10,000 support zone.
Bitcoin Price Could Recover Higher
Yesterday, there was another downward move below the $10,200 level in bitcoin price against the US Dollar. BTC retested the $9,900 zone and remained well bid. A strong support base was formed near $9,880 and the price started fresh increase.
It seems like there is a double bottom pattern forming near the $9,880 level. Bitcoin is recovering higher and it surpassed the $10,200 resistance level.
There was also a break above a key declining channel with resistance near $10,200 on the hourly chart of the BTC/USD pair. The pair is now trading nicely above $10,300 and the 100 hourly simple moving average.
Bitcoin price trades above $10,300. Source: TradingView.com
It tested the $10,400 resistance and a high is formed near $10,415. The price is currently correcting lower and trading near the $10,320 level. An initial support is near the $10,280 level or the 23.6% Fib retracement level of the recent rise from the $9,891 low to $10,415 high.
The first major support on the downside is near the broke channel resistance and $10,150. The 50% Fib retracement level of the recent rise from the $9,891 low to $10,415 high is also near $10,150.
On the upside, the price is facing a couple of strong hurdles near $10,400 and $10,500. If the highlighted double bottom pattern plays well, there are chances of a strong increase above $10,500 and $10,550 in the near term.
Fresh Rejection in BTC?
If the bulls fail to gain strength and bitcoin dips below the $10,150 support, it could revisit the $10,000 and $9,880 support levels.
A close below the $9,880 low is likely to invalidate the double bottom pattern. In the stated case, the price might decline further towards the $9,600 level.
Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level.
Major Support Levels – $10,200, followed by $10,150.
Major Resistance Levels – $10,400, $10,500 and $10,550.