- Bitcoin price started a downside correction after trading as high as $5,641 against the US Dollar.
- The price tested the $5,500 support area and recently bounced back above $5,580.
- There is a key bullish continuation pattern in place with resistance near $5,595 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair remains well supported on the downside and it could climb to a new 2019 high above $5,641.
Bitcoin price remains in a strong uptrend above $5,400 against the US Dollar. BTC is moving higher once again and it is likely to accelerate above the $5,650 and $5,700 levels.
Bitcoin Price Analysis
Yesterday, we saw a solid rise in bitcoin price above the $5,400 and $5,500 resistances against the US Dollar. The BTC/USD pair even broke the $5,600 level and settled above the 100 hourly simple moving average. The price traded to a new 2019 high at $5,641 and later started a downside correction. It broke the $5,600 level and the 23.6% Fib retracement level of the last wave from the $5,361 low to $5,641 high.
However, the price found a strong support near the $5,500 level. The 50% Fib retracement level of the last wave from the $5,361 low to $5,641 high also acted as a support. Moreover, yesterday’s bullish trend line with current support at $5,420 is intact on the hourly chart of the BTC/USD pair. Besides, there is a key bullish continuation pattern in place with resistance near $5,595 on the same chart. If there is an upside break above the triangle and $5,600, the price is likely retest the $5,640 level.
The current price action is positive and it seems like the price could even surge above $5,650. The next stop for the bulls could be $5,700 or $5,720. On the downside, an initial support is near the $5,520 level. If there is a downside break below the triangle, the price could test the $5,460 support. It represents the 61.8% Fib retracement level of the last wave from the $5,361 low to $5,641 high.
Looking at the chart, bitcoin price is clearly trading in a strong bullish trend above $5,460 and $5,500. There are high chances of a break above the $5,650 level. It will most likely open the gates for another run towards the $5,800 or $6,000 level in the coming sessions. Conversely, a close below $5,400 may negate the current bullish view.
Technical indicators:
Hourly MACD – The MACD is about to move back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD jumped back above the 50 level and it is currently above 60.
Major Support Levels – $5,520 followed by $5,460.
Major Resistance Levels – $5,600, $5,640 and $5,700.
