Yesterday, the BTC/USD pair started a decent recovery wave from the $8,813 low. The price climbed above the $9,000 resistance level to move into a short term positive zone. The upward move was such that the BTC price was able to settle above $9,100 and the 100 hourly simple moving average (SMA). Additionally, there was a break above a key bearish trend line on the BTC/USD hourly chart, with resistance near $9,170.
However, the price is still lacking momentum above the $9,200 resistance level. It is currently trading close to the broken trend line at $9,170. At press time, BTC is up by 0.8% and is trading at $9,145. The hourly MACD for the pair is now struggling to gain pace in the bullish zone. Its Hourly RSI (Relative Strength Index) is currently correcting lower towards the 50 level.
On the upside, the price must clear the main $9,300 and $9,340 resistance levels to move into a positive zone. If this happens, there could be a sharp upward move towards the $9,500 and $9,550 resistance levels in the coming sessions.
However, if BTC fails to continue higher above $9,200 or $9,300, there is a risk of a bearish reaction. On the downside, an initial support is seen near the 23.6% Fib retracement level of the recent upward move from the $8,813 low to $9,226 high. Meanwhile, the main support is now forming close to the $9,000 level and the 100 hourly SMA. It is near the 50% Fib retracement level of the recent upward move from the $8,813 low to $9,226 high.
A successful close below the $9,000 support level and 100 hourly SMA could negate the chances of an upside break. In the mentioned bearish case, the price will most likely resume its decline towards $8,800 or even $8,650 in the near term.