Bitcoin price started a downside correction from the $10,500 swing high. BTC to USD tested the $10,060 support area and it is slowly climbing higher.
Key Takeaways: BTC/USD
- Bitcoin price is currently trading well below the $10,500 resistance area against the US Dollar.
- BTC/USD is holding the $10,100 support level and a connecting bullish trend line on the 2-hours chart (data feed from Bitstamp).
- Ethereum is trading nicely above the $262.00 and $265.00 support levels.
Bitcoin Price Analysis
After a strong upward move, bitcoin price broke the $10,400 area. However, BTC to USD failed to continue above the $10,500 resistance area and formed a short term top near the $10,501 level.
Looking at the 2-hours chart, bitcoin started a downside correction from $10,500 and traded below the $10,320 level. Moreover, there was a break below the 23.6% Fib retracement level of the rise from $9,708 to $10,500.
Recently, the bulls were able to defend the $10,100 support area and the 50 simple moving average (2-hours, purple). Besides, the 50% Fib retracement level of the rise from $9,708 to $10,500 also acted as a strong support.
More importantly, bitcoin price is holding the $10,100 support level and a connecting bullish trend line on the 2-hours chart. If the price fails to stay above the $10,100 support and the 50 simple moving average (2-hours, purple), there could be more downsides.
The main support is near the $10,060 level, below which there is a risk of a drop towards the $9,895 level. It represents the 76.4% Fib retracement level of the rise from $9,708 to $10,500.
On the upside, there is a strong resistance forming near the $10,300 level. A clear break above the $10,300 level could open the doors for a larger upward move towards the $10,500 and $10,600 resistance levels. Any further gains could lead the price towards $10,850.
The overall trend is still positive for bitcoin as long as the price is above the $10,060 support area. If not, it could decline heavily below the $10,000 support level in the coming sessions.