Bitcoin Price Testing Crucial Weekly Resistance: Can BTC Rally Above $10K?

Bitcoin price started a steady rise above the $7,500 and $9,000 resistance levels against the US dollar. However, BTC is now testing a crucial resistance near $9,900 on the weekly time frame.

After trading as low as $3,824, bitcoin started a strong upward move. The bulls remained in action and gained strength above the $5,000 and $7,000 resistance levels. It helped altcoins as well, including ethereum and ripple.

Key Points

• Bitcoin price is trading nicely above the $9,000 resistance level against the US Dollar.
• There is a crucial bearish trend line forming with resistance near $9,900 on the weekly chart of the BTC/USD pair.
• A successful close above $10,000 might start a multi-week bullish trend in the near term.

Bitcoin Price Analysis

In the past few weeks, bitcoin bulls remained active above the $5,000 pivot level. The upward move was such that the price settled above the $8,000 level and the 25-week simple moving average.

There was a clear break above the 50% Fibonacci retracement level of the key drop from the $10,491 high to $3,824 low. It opened the doors for more gains above the $9,000 resistance.

The price even spiked above the $9,500 resistance, plus the 76% Fibonacci retracement level of the key drop from the $10,491 high to $3,824 low. However, it faced a strong selling interest near the $9,900 and $10,000 levels.

There is also a crucial bearish trend line forming with resistance near $9,900 on the weekly chart of the BTC/USD pair. Therefore, the bulls must gain strength above the $10,000 resistance zone for a sustained upward move.

A successful close above the $10,000 resistance zone could start a multi-week bullish trend in the near term towards $10,500 and $12,000.

Bearish Rejection in BTC

If bitcoin fails to clear the $10,000 resistance zone and the trend line, there is a risk of a bearish reaction. An initial support is seen near the $9,000 level.

The first major weekly support is near the $8,000 level since it is close to the 25-week simple moving average. Any further losses may possibly start a fresh downtrend.