Key Points
- Bitcoin price extended upsides and traded above the $3,580 and $3,650 resistances against the US Dollar.
- There is a key bullish trend line formed with support at $3,640 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price remains in a solid uptrend and it could rise towards $4,000 or even $4,200.
Bitcoin price gained pace above the $3,650 resistance against the US Dollar. BTC traded close to $3,800 and it looks set for further gains towards $4,000 or $4,200.
Bitcoin Price Analysis
Yesterday, we saw a nice bullish move above $3,400 in bitcoin price against the US Dollar. The BTC/USD pair traded towards the $3,600 level and later corrected lower. However, dips remained supported and the price bounced back from the $3,440 support. Buyers regained strength and pushed the price above the $3,580 and $3,650 resistance levels. It traded to a new weekly high at $3,776 and currently consolidating gains.
An initial support is near $3,700 and the 23.6% Fib retracement level of the last wave from the $3,440 low to $3,776 high. Below $3,700, there are many supports near the $3,600 level. There is also a key bullish trend line formed with support at $3,640 on the hourly chart of the BTC/USD pair. Besides, the 50% Fib retracement level of the last wave from the $3,440 low to $3,776 high is around $3,608. Therefore, if there is a downside correction, the price might find support near $3,640 or $3,600. The next main support is at $3,300 and the 100 hourly simple moving average.
Looking at the chart, bitcoin price is clearly following a solid uptrend above $3,580. To the topside, a break above the $3,770 and $3,800 resistance could clear the path towards $4,000 or $4,200.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is placed nicely in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently well above the 65 level.
Major Support Level – $3,600
Major Resistance Level – $3,800
