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100-day SMA Could Ignite a Bullish Breakout for Bitcoin: Here’s Why

100-day SMA Could Ignite a Bullish Breakout for Bitcoin: Here’s Why


Bitcoin is trading in a contracting range above $9,000 against the US Dollar. BTC’s daily chart suggests that the price could rally above $9,300 as long as it is above the 100-day SMA.

  • Bitcoin is holding a couple of important supports near $9,000 and $8,800.
  • The price is currently facing strong barriers near $9,300 and $9,400.
  • There is a crucial contracting triangle forming with resistance near $9,250 on the daily chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a sharp rally above $9,300 as long as it is above the 100-day simple moving average.

Bitcoin Price Could Restart its Rally

In the past few days, bitcoin price mostly traded with a bearish angle below the $9,500 resistance against the US Dollar. BTC even settled below the $9,300 level, but it remained well above the 100-day simple moving average.

The last swing low was formed near $8,809 before the price started a short-term upside correction. There was a break above the $9,000 and $9,200 levels. The price even broke the 50% Fib retracement level of the downward move from the $9,768 swing high to $8,809 low.

However, the upward move was capped by the $9,400 resistance level. The bulls also struggled to clear the 61.8% Fib retracement level of the downward move from the $9,768 swing high to $8,809 low.

Bitcoin price holding $9,000: Source: TradingView.com

It seems like there is a crucial contracting triangle forming with resistance near $9,250 on the daily chart of the BTC/USD pair. If there is a clear break above the triangle resistance and $9,300, the price could start a sharp upward move.

The next hurdles are $9,400 and $9,500, above which the bulls are likely to aim a retest of the main $10,000 handle in the coming days.

Chances of Downside Break?

On the downside, there is a significant support forming near $9,000, $8,800 and the 100-day simple moving average. As long as the price is above the 100-day SMA, there are chances of an upside break above $9,300.

If not, there is a risk of a nasty decline below the $8,800 support. In the mentioned case, the price may perhaps nosedive towards the $8,200 and $8,000 levels in the near future.

Technical indicators:

Daily MACD – The MACD is about to move into the bullish zone.

Daily RSI (Relative Strength Index) – The RSI for BTC/USD is now just below the 50 level.

Major Support Levels – $9,000 followed by $8,800.

Major Resistance Levels – $9,250, $9,300 and $9,500.



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CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin13,491 0.48 % 2.16 % 5.34 %
Ethereum388.94 0.17 % 0.86 % 0.57 %
Tether0.9984 0.13 % 0.12 % 0.07 %
XRP0.2444 0.24 % 0.56 % 2.53 %
Bitcoin Cash268.49 0.15 % 1.37 % 3.87 %
Binance Coin29.94 0.24 % 0.94 % 1.02 %
Chainlink11.24 0.61 % 2.01 % 3.93 %
Polkadot4.070 1.05 % 5.89 % 1.42 %
Litecoin55.02 0.70 % 1.29 % 3.89 %
Bitcoin SV167.56 0.15 % 1.39 % 1.99 %