technical analysis bitcoin

Bitcoin (BTC) Price Skyrockets To $5K As Uptrend Solidifies

Avatar Aayush Jindal 6 months ago
  • Bitcoin price surged more than 15% and cleared the main $4,200 resistance against the US Dollar.
  • The price rallied close to the $5,000 and $5,200 resistance levels, where sellers emerged.
  • There was a break above a crucial contracting triangle with resistance at $4,200 on the daily chart of the BTC/USD pair (data feed from Kraken).
  • The pair almost touched a strong resistance zone near $5,000 before pulling back to $4,750.

Bitcoin price rallied above $4,200, $4,400 and $4,750 against the US Dollar. BTC traded towards the $5,000 resistance and it is currently correcting lower.

Bitcoin Price Analysis

In the past few analysis, we discussed the importance of the $4,140 and $4,200 resistances for bitcoin price against the US Dollar. The BTC/USD pair formed a solid support base above the $3,900 level and it recently settled above the $4,000 pivot level. It opened the doors for more upsides since the price even settled above the $4,100 and the 100-day simple moving average. Today, bulls gained momentum, resulting in a strong upside break above the $4,200 and $4,400 resistance levels.

More importantly, there was a break above a crucial contracting triangle with resistance at $4,200 on the daily chart of the BTC/USD pair. These are strong bullish signs since the price settled above the $4,200 and $4,400 hurdles. The market sentiment improved and the price even spiked above the 50% Fib retracement level of the last decline from the $6,546 high to $3,122 swing low. The price even climbed towards the $5,200 barrier, but it failed to retain momentum.

There was no test of the 61.8% Fib retracement level of the last decline from the $6,546 high to $3,122 swing low. BTC retreated from highs and it is currently trading near the $4,750 level. On the downside, there are many supports near the $4,400 level. The recent rally above key resistances has cleared the path for more upsides above $5,000. If there is a downside correction, the previous important resistance at $4,200 is likely to act as a strong support.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price cleared surged after it broke the main $4,200 resistance. These are strong bullish signs, increasing chances of more upsides in the coming days. The next major resistance to watch out is at $5,200. If buyers even manage to surpass $5,200, the previous breakdown support at $6,000 could be tested (a strong sell zone).

Technical indicators:

Daily MACD – The MACD is gaining momentum in the bullish zone.

Daily RSI (Relative Strength Index) – The RSI for BTC/USD surged above the 70 level with many positive signs.

Major Support Levels – $4,400 followed by $4,200.

Major Resistance Levels – $4,850, $5,000 and $5,200.

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