- Bitcoin price broke the key $3,860 resistance and traded to a new weekly high against the US Dollar.
- The price is losing bullish momentum, but it is likely to continue above $3,900 and $3,940.
- There is a key bullish trend line formed with support at $3,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair must break the $3,890 and $3,900 resistance levels to continue higher in the near term.
Bitcoin price climbed higher slowly above $3,840 and $3,860 against the US Dollar. BTC could continue higher towards the $4,200 resistance, with supports at 3,820 and $3,760.
Bitcoin Price Analysis
In the past two days, there was a solid comeback by bitcoin price above the $3,760 resistance against the US Dollar. The BTC/USD pair followed a bullish structure and broke the $3,820 resistance level. There was even a close above the $3,800 level and the 100 hourly simple moving average. Later, there were a couple of rejections near the all-important $3,860 resistance. Finally, buyers gained momentum and pushed the price above the $3,860 resistance. A new weekly high was formed at $3,892 and the price is currently placed nicely in an uptrend.
It recently corrected below $3,880 and the 23.6% Fib retracement level of the recent rise from the $3,823 low to $3,892 high. However, there is a good support forming near the $3,850 level. It coincides with the 50% Fib retracement level of the recent rise from the $3,823 low to $3,892 high. More importantly, there is a key bullish trend line formed with support at $3,850 on the hourly chart of the BTC/USD pair. If there is a downside break below the trend line, the price could test the $3,820 support level.
On the other hand, if the price clears the $3,890 and $3,900 resistance levels, there are high chances of more gains. The next key target for buyers could be $4,000, above which the gates could open for a test of $4,200. An intermediate resistance is near the $4,120 level.
Looking at the chart, bitcoin price is staging for more gains above the $3,900 resistance. Having said that, there could be a short-term downside correction below $3,850. In the stated case, the price must hold the $3,780 level and the 100 hourly SMA. If it fails, there are possibilities of a trend change and the price could decline to $3,700.
Hourly MACD – The MACD is showing positive signs for a move into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD tested the 70 level and it is currently correcting lower.
Major Support Level – $3,850 followed by $3,820.
Major Resistance Level – $3,890, $3,900 and 3,980.
Author: Aayush Jindal