Sharp Rebound For Bitcoin Could Trigger More Gains: Analysis

A sharp rebound for Bitcoin could lead the BTC price to the 100 SMA which could eventually trigger more gains as we are reading in the latest bitcoin news today.

Bitcoin is surging and it tested the $9,400 support area against the US dollar. The price of the asset will continue higher to the $10,000 as long as it is above the 100 hourly SMA. BTC shows signs of going towards the $9,650 and $9,700 level. There was a sharp rebound after the price dropped to the $9,400 support zone and another break above the key bearish trend line with a resistance close to the $9,760 on the hourly charts for the BTC/USD pair. The pair will also go to the $10,000 high as long as it is above the 100 hourly SMA.

In the past two sessions, there were some swing moves in Bitcoin price below the $9,800 region as Bitcoin declined sharply below the level but the $9,400 region still acts as a strong support zone. A new low former near the $9,393 and the price then made a sharp rebound for BTC. It even broke the $9,500 region and the $9,600 resistance levels. BTC broke the 50% fib retracement level from the recent decline of the $9,892 high to the $9,393 low. There was also a break above the key bearish trend line with a resistance close to the $9,670 on the hourly charts. The pair is now trading above the $9,700 level and the 100 hourly simple moving average.

The initial resistance is close to the $9,800 level or about 76% Fib retracement from the recent decline of the $9,892 high to the $9,393 low. If there is another clear break above the $9,800 region, the price will continue higher towards the $9,880 and the $10,000 resistance levels. Any further gains above the $10,000 resistance zone could open the doors for another monthly high above the $10,400 region in the upcoming sessions.

On the downside, there is another key support forming close to the $9,680 level while the 100 hourly simple moving average stays still. If the price fails to stay above the level, it could slide right to the $9,500 support. The main support is close to the $9,400 and the $9,300 levels below which the bears will take over. If this happens, the price could decline sharply, making no more gains for the asset in the short-term. The terminal MACD indicator for Bitcoin is now moving nicely into the bullish zone, as per the recent reports.