Key Points
- Bitcoin price extended gains and broke the $4,000 and $4,050 resistances against the US Dollar.
- Yesterday’s key bullish trend line is in place with support at $3,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price is currently consolidating gains above $3,770 and it may continue to rise in the near term.
Bitcoin price broke the key $4,000 resistance and later corrected lower against the US Dollar. BTC is in an uptrend and dips remain supported near $3,850 or $3,770.
Bitcoin Price Analysis
Finally, there was a break above the $4,000 barrier in bitcoin price against the US Dollar. The BTC/USD pair even broke the $4,050 and $4,100 resistance levels. A new weekly high was formed at $4,173 and later the price corrected lower. It moved below the 23.6% Fib retracement level of the last leg from the $3,657 low to $4,173 high. The price even broke the $4,000 support, but it is currently well above the 100 hourly simple moving average.
The 50% Fib retracement level of the last leg from the $3,657 low to $4,173 high is currently preventing losses near $3,915. Moreover, yesterday’s key bullish trend line is in place with support at $3,850 on the hourly chart of the BTC/USD pair. Therefore, the price is likely to find a solid support near the $3,850 level. If there is a downside extension, the price may decline towards the key $3,770 support. The next support is near $3,655 and the 100 hourly SMA, followed by the main support is at $3,580.
Looking at the chart, bitcoin price is currently consolidating gains above $3,770. It may decline a few points towards $3,770 or $3,650, but it is likely to bounce back. On the upside, the key resistances are $4,050, $4,150 and $4,320.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI recently dipped below the 50 level.
Major Support Level – $3,770
Major Resistance Level – $4,150
