- Bitcoin price is consolidating and likely setting up for a fresh rise above $5,050 against the US Dollar.
- Ethereum, ripple, bitcoin cash and litecoin are trading with a positive bias above key supports.
- There is a major bullish trend line formed with support at $4,820 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair must clear the $5,050 and $5,100 resistance levels to start a fresh increase towards $5,300.
Bitcoin (BTC) is trading with a bullish bias and it could rally above the $5,100 resistance. Altcoins like Ethereum, ripple, bitcoin cash, litecoin and cardano are trading above key supports and likely to trade higher.
Bitcoin Price Analysis
Recently, we saw a decent downside correction from the $5,359 swing high in bitcoin price against the US Dollar. The BTC/USD pair declined below the $5,250 and $5,100 support levels to move into a short term bearish zone. The price traded as low as $4,754 and remained well above the 100 hourly simple moving average. Later, there was a fresh increase above the $4,900 level and the 23.6% Fib retracement level of the last drop from the $5,360 swing high to $4,754 low.
The price recently traded above a connecting bearish trend line with resistance at $4,975 on the hourly chart. The price even traded above the $5,000 level, but it failed to gain momentum above the $5,050 resistance. There was also no convincing break above the 50% Fib retracement level of the last drop from the $5,360 swing high to $4,754 low. At present, the price is trading in a range above the $4,950 and $4,900 supports. There is also a major bullish trend line forming with support at $4,820 on the same chart.
Therefore, there could be range moves in the short term before the price attempts to surpass the $5,050 and $5,100 resistance levels. Looking at altcoins, NANO and ZIL are currently gaining bullish momentum and are up more than 10%. Among the top 10 coins, Ethereum, ripple, bitcoin cash and litecoin are placed nicely above key supports and they are likely to follow bitcoin higher if it clears the $5,100 resistance.
Looking at the chart, BTC price seems to be consolidating gains above the $4,800 support and the 100 hourly SMA. It is likely to climb above the $5,050 and $5,100 resistance levels. The next key resistance is near $5,250, above which the price is likely to revisit the $5,359 high. Conversely, a close below $4,800 and the 100 hourly SMA might push the price towards the $4,600 area.
Technical indicators:
Hourly MACD – The MACD is slowly moving back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently flat above the 50 level.
Major Support Levels – $4,900 followed by $4,800.
Major Resistance Levels – $5,050, $5,100 and $5,200.
