Earlier this week, bitcoin price gained bullish momentum above the $9,500 resistance zone against the US Dollar. BTC even climbed above the $10,000 resistance zone to set a new monthly high.
There was a close above the $10,000 level and the 55 simple moving average (4-hours). However, the price failed to break the $10,400 and $10,500 resistance levels. As a result, there was a sharp bearish reaction below the $10,000 level.
The price even broke the $9,500 support, plus the 50% Fib retracement level of the upward move from the $8,629 low to $10,430 high. It tested a major support area near the $9,320 level and the 55 simple moving average (4-hours).
It seems like the 61.8% Fib retracement level of the upward move from the $8,629 low to $10,430 high is acting as a strong support. There is also a major bullish trend line forming with support near $9,050 on the 4-hours chart of the BTC/USD pair.
If the price fails to stay above the $9,320 support, it might even struggle to stay above the trend line support. Any further losses may perhaps lead the price back towards the $8,400 support zone in the coming sessions.
Conversely, the price may perhaps start a fresh increase from $9,320 and the 55 simple moving average (4-hours). An initial resistance is near the $9,650 and $9,700 levels.
The first major resistance is near the $9,940 level, above which the price might revisit the $10,400 resistance zone in the near term.