After a short term downside correction, BTC quickly recovered and traded well above the 100 hourly simple moving average (SMA) and started a fresh increase from $9,200. In addition, there was a break above the $9,400 and $9,500 resistance levels, paving way for another positive wave. During the uptrend, the price surpassed the $9,800 level and even revisited the $9,950 resistance level.
A recent high was formed near $9,945 and the price is currently attempting an upside break above the $9,950 resistance. Moreover, there is a key bullish trend line forming on the BTC/USD hourly chart, with support near $9,720. The hourly MACD is slowly gaining strength in the bullish zone and the hourly RSI (Relative Strength Index) is now well above the 60 level.
An initial support on the downside is near the $9,850 level. It is near the 23.6% Fib retracement level of the recent upward move from the $9,596 low to $9,945 high. The first major support is seen near the $9,770 level since it represents the 50% Fib retracement level of the recent upward move from the $9,596 low to $9,945 high.
On the upside, the bulls are facing a major resistance near the $9,950 and $10,000 levels. A successful break and close above the $10,000 resistance may perhaps pave way for a sustained increase. The next major resistance could be $10,500, above which the bulls might aim $11,200 in the coming sessions.
If the bulls fail again to break the $9,950 resistance zone, BTC could face a bearish reaction. If BTC trades below the trend line support, it could test the main support around the $9,500 level. The 100 hourly SMA is also close to $9,500. If the $9,500 support gets broken, there is a risk of a double top pattern, resulting in a sharp drop below $9,200 and $9,000 in the near term.