Bitcoin Price Bounces Back After Dip—Traders Eye Next Resistance Zone

Bitcoin price started a downside correction and tested the $94,000 zone. BTC is again rising and might aim for a move toward the $98,000 resistance.

• Bitcoin started a decent increase above the $95,500 resistance zone.
• The price is trading above $95,500 and the 100 hourly Simple moving average.
• There was a break above a connecting bearish trend line with resistance at $94,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start another increase if it clears the $97,750 zone.

Bitcoin price started a downside correction below the $95,500 support zone. BTC declined below the $95,000 and $94,500 support levels. However, the bulls were active near the $94,000 zone.

The recent low was formed at $93,398 and the price started a fresh increase. There was a move above the $94,500 level. Besides, there was a break above a connecting bearish trend line with resistance at $94,750 on the hourly chart of the BTC/USD pair.

There was a move above the $96,500 resistance zone. Bitcoin is now trading above $95,500 and the 100 hourly Simple moving average. A high was formed at $97,650 and the price is consolidating gains above the 23.6% Fib retracement level of the upward move from the $93,398 swing low to the $97,650 high.

On the upside, immediate resistance is near the $97,250 level. The first key resistance is near the $97,750 level. The next key resistance could be $98,000. A close above the $98,000 resistance might send the price further higher. In the stated case, the price could rise and test the $98,800 resistance level. Any more gains might send the price toward the $100,000 level.

If Bitcoin fails to rise above the $97,750 resistance zone, it could start another downside correction. Immediate support on the downside is near the $96,650 level. The first major support is near the $95,500 level and the 50% Fib retracement level of the upward move from the $93,398 swing low to the $97,650 high.

The next support is now near the $95,000 zone. Any more losses might send the price toward the $94,500 support in the near term. The main support sits at $93,200.

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 – $96,650, followed by $95,500.

Major Resistance Levels – $97,750 and $98,000.