- Bitcoin bulls back in action after defending $9,800 support but momentum still lacks the strength to clear short-term hurdles.
- Bitcoin’s opening price of $10,158 transforming into resistance as bulls charge towards $10,200.
Bitcoin is trading below the opening price ($10,158) on Thursday. The bulls initially extended the leg above $10,200 resistance before a reversal swept in at $10,205.70). The chart I analyzed earlier today shows regression having been stopped slightly above $9,800 on Wednesday. The almost immediate bounce above $10,000 was supported by the ascending trendline further encouraging the buyers to regain control.
Examining the confluence levels, $10,158 (opening price) has turned into an immediate resistance. Forming this confluence is the SMA 50 15-mins, SMA 10 1-hour, SMA 50 1-hour, SMA 200 15-mins, Fibonacci 38.2% 1-Day, Bollinger Band 15-mins upper, previous high-hour, and previous high-hour.
While trading above $10,158 will come as a boost to Bitcoin bulls, more resistance must be dealt with $10,368 before gaining momentum to tackle the strongest hurdle at $10,474. The various indicators forming a confluence here are the previous high 1-day, SMA 1-day, and the SMA 100 1-day. Similarly, converging at $10,474 is SMA 50 4-hour, SMA 200 1-hour, SMA 10 1-day, and Fibo 38.2% 1-week.
As long as Bitcoin stays below the barrier at $10,474 its support will be vulnerable to declines. For now, the first support lies at $10,053. This zone is home to the Fibo 61.8% 1-Day, Fibo 23.6% 1-Month, previous 4-hour, and the BB 15-mins lower. Apart from this support level, Bitcoin has no viable support area as per the confluence levels. However, some cushion can be found at $9,633 and $9,423.