Bitcoin Price Recovers Strongly—Is a New Rally Beginning?

Bitcoin price started a recovery wave above the $96,500 zone. BTC is rising and might aim for a move above the $98,800 resistance zone.

• Bitcoin started a decent recovery wave above the $96,500 zone.
• The price is trading above $97,000 and the 100 hourly Simple moving average.
• There is a key bullish trend line forming with support near $97,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start another increase if it stays above the $96,400 zone.

Bitcoin Price Aims Higher

Bitcoin price formed a base above the $94,500 level and started a recovery wave. BTC was able to surpass the $95,000 and $96,400 resistance levels.

The price even cleared the $97,500 resistance level. The bulls even pushed the price above $98,500. A high was formed near $98,725 and the price is now consolidating gains. The price is stable above the 23.6% Fib retracement level of the upward move from the $93,370 swing low to the $98,725 high.

Bitcoin price is now trading above $97,200 and the 100 hourly Simple moving average. There is also a key bullish trend line forming with support near $97,600 on the hourly chart of the BTC/USD pair.

On the upside, immediate resistance is near the $98,500 level. The first key resistance is near the $98,800 level. The next key resistance could be $99,500. A close above the $99,500 resistance might send the price further higher. In the stated case, the price could rise and test the $100,000 resistance level. Any more gains might send the price toward the $100,500 level or even $102,000.

Another Decline In BTC?

If Bitcoin fails to rise above the $98,800 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $97,500 level. The first major support is near the $96,500 level and the 50% Fib retracement level of the upward move from the $93,370 swing low to the $98,725 high.

The next support is now near the $95,500 zone. Any more losses might send the price toward the $94,200 support in the near term. The main support sits at $93,400.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $97,500, followed by $96,500.

Major Resistance Levels – $98,500 and $100,000.