technical analysis bitcoin

Bitcoin (BTC) Price Flirting With Key Support: Fresh Rise Likely

Avatar Aayush Jindal 7 months ago
  • Bitcoin price corrected lower recently after trading above the $5,800 level against the US Dollar.
  • The price declined below the $5,700 level and tested an important support near $5,580.
  • There is a key bullish trend line forming with support near $5,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to bounce back above $5,700 as long as it is above $5,600 and $5,540.

Bitcoin price remains well supported on the downside above $5,500 against the US Dollar. BTC could start a fresh rise if it clears the $5,700 and $5,780 resistance levels.

Bitcoin Price Analysis

This past week, we saw a strong rise in bitcoin price above the $5,700 resistance against the US Dollar. The BTC/USD pair even broke the $5,800 level and settled well above the 100 hourly simple moving average. The price traded to a new 2019 at $5,837 and recently started a downside correction. It traded below the $5,700 support and the $5,650 pivot level. However, the price remained well bid above the $5,540 and $5,580 support levels.

More importantly, the price is holding the 100 hourly simple moving average and is currently above $5,600. There is also a key bullish trend line forming with support near $5,600 on the hourly chart of the BTC/USD pair. An immediate resistance is near $5,685, and the 50% Fib retracement level of the recent decline from the $5,782 high to $5,584 low. However, the main resistance is near the $5,760 level and a connecting bearish trend line on the same chart. A successful close above $5,760 and $5,780 might push the price above the $5,800 and $5,850 levels.

On the downside, the main support is near the $5,600 level and the 100 hourly SMA. Below $5,600, the next key support is near the $5,540 level, where the bulls may emerge. If there is a downside break below $5,540, the price may revisit the last line of defense near $5,420. Any further losses may push the price in a short term bearish zone towards $5,200 or $5,100.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price is currently trading above important support near $5,600 and $5,580. Therefore, there are high chances of a fresh rise above $5,700 and $5,760. If the bulls regain momentum, the price could even trade to a new 2019 high above the $5,850 level in the coming sessions.

Technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently recovering, but it is still well below the 50 level.

Major Support Levels – $5,600 followed by $5,540.

Major Resistance Levels – $5,680, $5,700 and $5,760.

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