- Bitcoin price remains in a solid uptrend above the $5,070 and $5,000 supports against the US Dollar.
- The price is currently correcting lower, but it remains well supported above the $5,000 level.
- There is a crucial ascending channel forming with support at $5,075 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could dip a few points towards $5,070 before it starts a fresh increase towards $5,360.
Bitcoin price is currently correcting lower below $5,251 against the US Dollar. BTC could test the $5,050-5,070 support before it bounces back towards the $5,300 and $5,360 levels.
Bitcoin Price Analysis
Recently, there was a slow and steady rise towards the $5,300 resistance in bitcoin price against the US Dollar. The BTC/USD pair broke the $5,250 resistance area, but it failed to surpass the $5,300 resistance. Earlier, the price traded as high as $5,359 and later corrected below the $5,250 level. There was a break below the 23.6% Fib retracement level of the last leg from the $4,900 swing low to $5,360 swing high. The price even traded below the $5,200 level and tested the $5,130 level.
The 50% Fib retracement level of the last leg from the $4,900 swing low to $5,360 swing high acted as a strong support. There was a fresh increase above $5,250, but the price topped near $5,300. It is currently moving lower towards a connecting bullish trend line with support at $5,150 on the hourly chart of the BTC/USD pair. Below the trend line, the 100 hourly simple moving average is positioned at $5,100. More importantly, there is a crucial ascending channel forming with support at $5,075 on the same chart.
In the short term, there could be a downside spike towards the $5,100 or $5,075 support levels. However, buyers are likely to protect more losses below the channel support and $5,050. On the upside, an initial resistance is near the $5,250 level. The next key resistance is at $5,300, above which the price could revisit the $5,360 resistance.
Looking at the chart, bitcoin price remains in a solid uptrend and it won’t be easy for bears to push the price below $5,050 or $5,000. Only a successful close below $5,000 might start a substantial downside correction. The next key support is at $4,750. On the upside, a clear break above the $5,300 and $5,360 resistances could set the tone for a push towards $5,500.
Technical indicators:
Hourly MACD – The MACD is slowly moving in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD declined recently and seems to be struggling near 50.
Major Support Levels – $5,100 followed by $5,070.
Major Resistance Levels – $5,250, $5,300 and $5,360.
