After the BTC/USD pair had successful broken the $9,500 barrier, it extended its rally above the $9,600 level. The BTC price even broke the $9,650 level and settled well above the 100 hourly simple moving average (SMA). It traded to a new monthly high at $9,676 and it is currently making a downside correction.?
The correction was such that there was a break below the $9,600 level, plus the 23.6% Fib retracement level of the recent increase from the $9,465 low to $9,676 high. The price is now approaching the $9,550 support zone. It is also near the 50% Fib retracement level of the recent increase from the $9,465 low to $9,676 high.
Notably, there is a crucial bullish trend line forming on the BTC/USD hourly chart, with support near $9,510. The hourly MACD for the pair is now moving slowly in the bearish zone. Its hourly RSI (Relative Strength Index) is currently correcting lower towards the 50 level.
If the price manages to stay above the trend line support, it could resume its upward move above the $9,600 level. An initial hurdle on the upside is close to the $9,650 level. A clear break above $9,650 could lead the price to climb towards $9,800. The main target for the bulls in the near term may probably be the $10,000 handle.
On the other hand, if BTC corrects lower, the trend line support and $9,500 might play a major role. A break below the trend line support could push the price to continue to decline towards the $9,420 support area. Any further losses may perhaps pave way for a test of the $9,350 level or the 100 hourly SMA in the coming sessions. The next major support is forming close to the $9,300 level.