Bitcoin price extended its rally and climbed above the $10,500 and $10,650 resistances against the US Dollar.

The price is currently correcting lower after trading to a new monthly high at $10,790.

There is a major bullish trend line forming with support near $10,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).

The price is showing positive signs and it remains well bid near $10,500 and $10,400.

Bitcoin price is gaining bullish momentum above $10,500 against the US Dollar. BTC might correct lower, but it is likely to bounce back from the $10,400 support.

Bitcoin Price Analysis

Yesterday, we saw a nice upward move in BTC, Ethereum and ripple against the US Dollar. The bulls gained traction and pushed bitcoin above the $10,400 and $10,500 resistance levels. Moreover, there was a close above the $10,500 resistance and the 100 hourly simple moving average. It opened the doors for more gains and the price climbed above the $10,650 resistance.

Finally, a new monthly high was formed near $10,790 and the price is currently correcting lower. It broke the $10,650 level plus the 23.6% Fib retracement level of the upward move from the $10,296 low to $10,790 high. However, the decline found support near the $10,450 level. Additionally, there is a major bullish trend line forming with support near $10,400 on the hourly chart of the BTC/USD pair.

Bitcoin stayed well above the 61.8% Fib retracement level of the upward move from the $10,296 low to $10,790 high. At the moment, there is a contracting triangle forming with support near $10,450 on the same chart. In the short term, the price could decline towards the $10,450 and $10,400 support levels. As long as the price is above $10,400, there could be another rise towards the $10,800 resistance level.

Conversely, if the price fails to stay above the $10,400 support, it could extend its correction. The next key support is near the $10,200 level, plus the 1.236 Fib extension level of the upward move from the $10,296 low to $10,790 high. The main support is near the $10,000 level, which is also close to the 100 hourly simple moving average.

Looking at the chart, bitcoin price is trading with a positive bias above the $10,450 and $10,400 support levels. Even if there is an extended downside correction, the $10,200 level might act prevent declines. On the upside, the next set of resistance is near the $10,800 and $11,000 levels.

Technical indicators:

Hourly MACD – The MACD is currently placed in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is holding the 50 level, with a minor bearish angle.

Major Support Levels – $10,450 followed by $10,400.

Major Resistance Levels – $10,700, $10,800 and $11,000.