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Bitcoin (BTC) Price Upswing Could Gather Momentum Above $4K

Avatar Aayush Jindal 1 year ago
  • Bitcoin price stayed above the $3,850 support and rebounded above $3,940 against the US Dollar.
  • The price surged higher and settled above the $3,900 and $3,940 resistance levels.
  • This week’s followed crucial bearish trend line was cleared with resistance at $3,945 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is now back in a positive zone and it could extend gains above the $3,980 and $4,000 resistances.

Bitcoin price made a sharp U-turn from new weekly lows against the US Dollar. BTC is back above the $3,940 pivot level and it could accelerate gains above the $4,000 barrier in the near term.

Bitcoin Price Analysis

Yesterday, we saw an extended decline in bitcoin price below the $3,900 support against the US Dollar. The BTC/USD pair traded to a new weekly low at $3,850. Later, the pair formed a decent support base near the $3,880 level. As a result, there was a strong upswing and the price climbed above the $3,900 resistance level. More importantly, the price cleared the key resistances near $3,920 and $3,940 (the previous supports).

Besides, bulls cleared this week’s followed crucial bearish trend line with resistance at $3,945 on the hourly chart of the BTC/USD pair. The pair settled above the $3,940 resistance and the 100 hourly simple moving average. It even spiked above the $3,980 resistance and a new intraday high was formed at $3,988. The price is currently consolidating below $3,988 and it seems like there could be more gains. On the downside, an initial support is near $3,955 and the 23.6% Fib retracement level of the recent wave from the $3,856 low to $3,988 high.

However, the main support is near the $3,940 and $3,920 levels. The 50% Fib retracement level of the recent wave from the $3,856 low to $3,988 high is also near the $3,920 level. On the upside, the price is likely to accelerate above the $4,000 resistance in the near term. The next stop for buyers could be near $4,020 or $4,040.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price pumped nicely above the $3,940 pivot level and moved into a positive zone. The current price action is positive and suggests more gains above $4,000 and $4,020. There are even chances of a fresh high above the $4,040 resistance. On the other hand, if there is a downside correction, buyers are likely to protect the $3,940 and $3,920 support levels.

Technical indicators:

Hourly MACD – The MACD is gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD jumped higher sharply and it is currently in the overbought zone.

Major Support Levels – $3,940 followed by $3,920.

Major Resistance Levels – $4,000, $4,020 and $4,040.

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial...

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