Analysis Technical

Bitcoin Price Watch: BTC Rally Could Extend Above $4,000 and $4,200

Aayush Jindal | March 6, 2019 | 6:30 am
technical analysis bitcoin
Analysis

Bitcoin Price Watch: BTC Rally Could Extend Above $4,000 and $4,200

Aayush Jindal | March 6, 2019 | 6:30 am
  • Bitcoin price rallied recently and broke the $3,760 and $3,800 resistances against the US Dollar.
  • The price ran into the most important resistance at $3,860, which prevented further upsides again.
  • During the upside, there was a break above a key bearish trend line at $3,780 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is currently consolidating losses below $3,860, with supports at $3,800 and $3,775.

Bitcoin price reversed most its losses and surged above $3,800 against the US Dollar. BTC is now facing a strong resistance at $3,860, above which it could test $4,000.

Bitcoin Price Analysis

Yesterday, bitcoin price broke the $3,720 support level and tested $3,670 against the US Dollar. The BTC/USD pair formed a low near the $3,672 level and later started a solid rebound. There was a break above a contracting triangle at $3,710, opening the doors for a fresh rally. The price surged higher and broke the $3,750 and $3,800 resistance levels. There was even a close above the $3,760 resistance and the 100 hourly simple moving average.

More importantly, there was a break above a key bearish trend line at $3,780 on the hourly chart of the BTC/USD pair. The pair even spiked above the most important resistance at $3,860. However, buyers failed to retain gains above the $3,860 resistance and the price retreated from highs. It corrected below the $3,850 and $3,840 level. There was also a break below the 23.6% Fib retracement level of the recent wave from the $3,672 low to $3,875 high.

At the outset, the price is forming a consolidation pattern with support at $3,810. If there is a downside break below $3,810, the price could test the $3,775 support and the 100 hourly simple moving average. Besides, the 50% Fib retracement level of the recent wave from the $3,672 low to $3,875 high is also near $3,775. The main support is near the $3,760 level, which was a resistance earlier. On the upside, the price must settle above the $3,860 resistance level to climb further higher.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price clearly reversed most its losses and traded above the key $3,760 resistance. BTC is now trading nicely above the 100 hourly SMA, but it must surpass the $3,860 barrier for more gains. If there is another rejection, the price could retreat and decline towards the $3,775 or $3,760 support area.

Technical indicators

Hourly MACD – The MACD is currently in the bearish zone, with a few positive signs.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD corrected lower, but it is well above the 50 level.

Major Support Level – $3,800 followed by $3,775.

Major Resistance Level – $3,850, $3,860 and 3,900.

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