BTC/USD price up by more than 1.5% but sellers are likely to limit gains and push the cryptocurrency back into range.
Bitcoin price has jumped 1.5% to trade above $9,320 and see the bulls eye a revisit to resistance levels around $9,500 for the first time in weeks.
At the time of writing, BTC/USD is trading at $9,342 with its intraday trades hitting a high of $9,359. As well as Bitcoin, top altcoin Ethereum has turned green on the day but is similarly facing major resistance above $240. Litecoin (2%), Zcash (3%), and IOTA (5.3%) lead the upsurge.
According to crypto data analytics platform Skew, the upside provides the “first sign of life” for Bitcoin in over a week.
BTC Swap vs. Spot price chart.
BTC/USD breakout faces tough barriers
Bitcoin’s takeoff from consolidation levels under $9,200 currently faces a tough hurdle at $9,371. A break above this price barrier could allow bulls an easy run to $9,500.
As has been the case over the past several weeks, low volatility and limited volume are putting brakes on an upward move. However, according to this technical analyst, Bitcoin’s move above $9,300 maintains the cryptocurrency’s three-month uptrend.
Chart showing BTC/USD has maintained an uptrend line since May.
According to Big Cheds, the impasse that has seen Bitcoin range-bound is coming to an end. Below is a chart he shared showing the price of Bitcoin poised near the top of the resistance trendline.
BTC/USD price chart.
As can be seen from the charts, a break above $9,500 could see investors watch out for a retest of $10k. However, key to Bitcoin bulls is the immediate reaction of sellers above $9,300.
The lack of movement means the bulls hardly have support in the area, and if sellers overpower bulls once more, a drop would take BTC/USD to the next support zone at $9,160.
Resistance above $9,326 is provided by a confluence of technical signals. They include the previous highs/lows on the shorter timeframes, Bollinger Band on both the hourly and 4-hour time frames, and the 38.2% and 23.6% Fibonacci retracement levels on the daily and monthly charts respectively.
Shedding gains made during the Asian trading session in latter sessions will see the $9,100 – $9,000 position come into play.
BTC/USD has jumped 1.56% as of writing and positive sentiment in the European and US trading sessions could see it close above the $9,100-$9,300 range for the first time in the past seven days.