- Bitcoin price is in a strong uptrend, and likely to extend gains above $2880 against the US Dollar.
- There is a crucial bullish trend line with support at $2750 forming on the 4-hours chart of BTC/USD (data feed from SimpleFX).
- A break and close above $2880 might call for a move towards the $3000 level.
Bitcoin price gained decent bullish momentum above $2700 against the US Dollar, and it looks like BTC/USD is preparing for a move towards $3000.
Bitcoin Price Support Zone
In the last weekly analysis, I mentioned that there is a real chance of Bitcoin price retesting $2684 against the US Dollar. The price did gain pace, and traded higher for a move towards $2700. It also managed to trade to a new all-time high at $2285. The price is currently correcting lower, but remains well supported above $2700. It recently moved below the 23.6% Fib retracement level of the last wave from the $2566 low to $2885 high.
However, the downside move was prevented below $2700. There is a key bullish trend line with support at $2750 forming on the 4-hours chart of BTC/USD. It is preventing downsides and holding losses below $2750. Moreover, the 50% Fib retracement level of the last wave from the $2566 low to $2885 high is also holding losses very well. Below $2750, there is another bullish trend line just above $2700.
Overall, there are many supports on the downside, starting with $2780 up to $2700. As long as the price stays above these supports, there can be a break above $2880. However, the stated level is acting as a strong resistance, but may not be able to prevent gains towards $3000.
Looking at the technical indicators:
4-hours MACD – The MACD is reducing the bullish zone, but showing positive signs.
4-hours RSI (Relative Strength Index) – The RSI is currently moving lower, but remains well above the 50 level.
Major Support Level – $2700
Major Resistance Level – $2880
Charts courtesy – SimpleFX