BTC Seems To Be Preparing For a Crucial Bullish Breakout above the $10,000 Level Soon
The BTC price recently made a downside correction below the $10,000 level. During the decline, the price broke many supports, including the $9,500 and $9,300 levels. However, it remained well bid close to the $9,000 support zone. BTC is currently recovering steadily and trading well above the $9,300 level. There was a break above the 23.6% Fib retracement level of the recent key decline from the $10,390 high to $9,080 low.
Notably, it appears there is a key contracting triangle forming on the BTC/USD daily chart, with resistance near $9,750. The triangle resistance is near the 50% Fib retracement level of the recent key decline from the $10,390 high to $9,080 low. The daily MACD for the pair is slowly moving in the bearish zone. Its daily RSI (Relative Strength Index) BTC/USD is currently just below the 50 level.
On the upside, the price must climb above the $9,750 resistance zone to begin a fresh increase. The main resistance is still close to the $10,000 level. If the bulls manage to break above the $10,000 resistance, there are high chances of a steady rise towards the $10,500 and $10,800 levels in the near term.
On the other hand, if BTC fails to clear the $9,750 resistance, there is a risk of a bearish reaction. An initial support is seen close to the $9,300 level. If there is a daily break and close below $9,300, the price could start a fresh downside move. The first major support is near the $9,000 level, below which the price might extend its downtrend. However, the main support is close to the $8,250 level and the 100-day simple moving average, where the bulls are likely to take a stand.