Analysis Technical

Bitcoin Price Watch: BTC Breaks $4K, More Gains Possible

Aayush Jindal | January 7, 2019 | 7:00 am
technical analysis bitcoin
Analysis

Bitcoin Price Watch: BTC Breaks $4K, More Gains Possible

Aayush Jindal | January 7, 2019 | 7:00 am
  • Bitcoin price finally broke the $4,000 barrier and traded towards $4,100 against the US Dollar.
  • There was a break above a major bearish trend line with resistance at $3,830 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The price is currently consolidating gains and dips towards $4,000 and $3,920 remain supported.

Bitcoin price gained bullish momentum and cleared $4,000 against the US Dollar. BTC could correct a few points, but it is likely to resume uptrend above $4,100.

Bitcoin Price Analysis

Recently, we discussed about a possible upside break above $4,000 in bitcoin price against the US Dollar. The BTC/USD pair did move higher and broke the $3,950 and $4,000 resistance levels. The recent upward move was strong as the price even cleared the $4,050 level and 100 hourly simple moving average. More importantly, there was a solid hourly candle formed, piercing the $4,000 barrier.

During the rise, there was a break above a major bearish trend line with resistance at $3,830 on the hourly chart of the BTC/USD pair. The pair traded as high as $4,082 and later started consolidating gains. An initial support is the 23.6% Fib retracement level of the last wave from the $3,762 low to $4,082 high. Below $4,000, the price may move towards the $3,920 support level. It represents the 50% Fib retracement level of the last wave from the $3,762 low to $4,082 high. The main support for buyers is near the $3,860 level, which was a strong resistance this past week. Therefore, if there is a downside correction, the price may find bids near the $4,000 and $3,920 levels.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price clearly broke a crucial resistance near $4,000 and $4,050. It is currently placed nicely above the 100 hourly SMA, but it must clear the $4,080-4,100 barrier for more gains. The next key resistance is at $4,200 followed by $4,220.

Technical indicators

Hourly MACD – The MACD for BTC/USD is slowly moving in the bearish zone, suggesting a downside correction.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 60 level, with a positive bias.

Major Support Level – $3,920

Major Resistance Level – $4,100

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