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- Bitcoin price climbed higher and broke the $4,100 resistance area against the US Dollar.
- The price corrected lower recently, but the $4,040 level acted as a strong support.
- There is a crucial ascending channel in place with support at $4,060 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair remains supported on the downside and it could bounce back above $4,100 in the near term.
Bitcoin price is following a steady uptrend above $4,000 against the US Dollar. BTC corrected lower recently, but it remains well bid above the $4,040 ad $4,020 levels.
Bitcoin Price Analysis
Yesterday, we saw a solid upside break above the $4,000 resistance in bitcoin price against the US Dollar. The BTC/USD pair followed a bullish path and traded above a crucial resistance near the $4,040 level. There was a strong close above the $4,000 level and the 100 hourly simple moving average. The price accelerated gains above the $4,050 and $4,100 resistance levels. A new weekly high was formed near $4,132 and later the price started a downside correction.
Sellers pushed the price below the $4,100 support and the 23.6% Fib retracement level of the recent wave from the $4,007 low to $4,132 high. There was a spike below the $4,050 level and the 50% Fib retracement level of the recent wave from the $4,007 low to $4,132 high. However, the previous crucial resistance near the $4,040 level acted as a strong support. The price was also rejected from the 61.8% Fib retracement level of the recent wave from the $4,007 low to $4,132 high.
More importantly, there is a crucial ascending channel in place with support at $4,060 on the hourly chart of the BTC/USD pair. The pair is currently trading above the channel support and $4,070. It seems like there could be another dip towards the $4,040 support before the price starts a fresh upward move. On the upside, an initial resistance is near the $4,100 level, above which the price could break the $4,132 high.
Looking at the chart, bitcoin price is following a nice uptrend above the $4,040 support level. If there is an extended decline below the $4,040 support, the price may revisit the $4,000 support area. On the upside, a clear break above $4,100 and $4,132 could push the price further higher. The next stop for bulls might be $4,150 or $4,180.
Technical indicators:
Hourly MACD – The MACD is slowly reducing its bearish slope.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently near the 50 level, with a minor bearish angle.
Major Support Levels – $4,060 followed by $4,040.
Major Resistance Levels – $4,100, $4,130 and $4,150.
