- Bitcoin price surged higher recently and moved above $2700 against the US Dollar to gain momentum.
- There was a break below a major bearish trend line with resistance at $2380 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
- The price is currently consolidating above the $2650 support and setting up for the next move.
Bitcoin price after a major decline recovered above $2500 against the US Dollar, and now BTC/USD is well placed to continue higher in the near term.
Bitcoin Price Upside Break
The past few days were excellent for Bitcoin price as it recovered from losses and moved above $2400 against the US Dollar. The upside move was such that the price was able to clear the 50% Fib retracement level of the last decline from the $2620 high to $824 low. Later, the price surged higher and even cleared the last swing high of $2620 to trade above $2700.
A new monthly high was formed near $2929 from where a correction wave was initiated. During the upside move, there was a break below a major bearish trend line with resistance at $2380 on the 4-hours chart of BTC/USD. Moreover, the pair was able to settle above $2650 and the 100 simple moving average on the same chart. It is a positive sign and signaling more gains above $2700 in the near term. At the moment, there is a short-term contracting triangle pattern forming with support at $2680.
The 38.2% Fib retracement level of the last wave from the $2214 low to $2929 high is at $2656. So, if the price dips from the current levels, it may find support at $2680-2650. All in all, Bitcoin remains buy on dips for more gains as long as above $2600.
Looking at the technical indicators:
4-hours MACD – The MACD is heavily placed in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is moving down from the 65 level.
Major Support Level – $2600
Major Resistance Level – $2900
Charts courtesy – SimpleFX