Analysis Technical

Bitcoin Price Watch: BTC Primed To Gain Bullish Momentum

Aayush Jindal | December 31, 2018 | 6:00 am
Analysis

Bitcoin Price Watch: BTC Primed To Gain Bullish Momentum

Aayush Jindal | December 31, 2018 | 6:00 am

Key Points

  • Bitcoin price recently tested the $3,950-4,000 resistance area against the US Dollar.
  • There is a key breakout pattern in place with resistance at $3,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The price is likely to break the $3,800 and $3,900 resistance levels to trade further higher.

Bitcoin price is likely preparing for an upside break above $3,800 against the US Dollar. BTC may climb sharply higher once there is a clear break above $3,800 and $3,900.

Bitcoin Price Analysis

After testing the $3,650 support, bitcoin price bounced back above $3,700 against the US Dollar. The BTC/USD pair broke the $3,800 resistance level and the 100 hourly simple moving average. There was even a spiked above $3,900, but the price struggled to gain momentum. There was no clear break above the $4,000 resistance and later the price declined below $3,800. The price is currently recovering and it is placed above the $3,700 level and the 50% Fib retracement level of the last wave from the $3,645 low to $3,946 high.

However, the $3,800 resistance is acting as a barrier for buyers. Besides, the 61.8% Fib retracement level of the last wave from the $3,645 low to $3,946 high is also preventing gains. At the outset, there is a key breakout pattern in place with resistance at $3,800 on the hourly chart of the BTC/USD pair. To trade higher, the price must break the $3,800 and $3,900 resistance levels. Finally, a break above $4,000 may open the doors for a sharp upward move.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price seems to be bracing the next break either above $3,800 or below $3,700. There are high chances of an upside break above $3,800-3,900 as long as the price is above $3,700 and 100 SMA.

Looking at the technical indicators:

Hourly MACD – The MACD for BTC/USD is about to move into the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI is just below the 50 level.

Major Support Level – $3,700

Major Resistance Level – $3,900

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