BUY BITCOIN
- Bitcoin price spiked higher and tested the main resistance at $4,050 against the US Dollar.
- The price is currently correcting lower, but dips remain supported near $4,000.
- There is an expanding triangle formed with resistance near $4,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair might dip towards the $4,000 or $3,980 support before a fresh upward move.
Bitcoin price is currently flirting with a major resistance zone against the US Dollar. BTC could rally significantly once there is a break above the $4,050 monthly resistance.
Bitcoin Price Analysis
Recently, we saw a decent upward move above the $3,940 resistance in bitcoin price against the US Dollar. The BTC/USD pair climbed above the $4,000 resistance and the 100 hourly simple moving average. Later, there were range moves above the $4,000 support level. Finally, there was an upside extension above the $4,020 resistance level. However, buyers faced a strong resistance near the $4,040 and $4,050 levels (previous swing highs). A fresh weekly high was formed at $4,048 and later the price corrected lower.
It moved below the $4,020 level and the 23.6% Fib retracement level of the recent upside from the $3,883 low to $4,048 high. On the downside, there is a strong support formed near the $4,000 level. There is also an expanding triangle formed with resistance near $4,050 on the hourly chart of the BTC/USD pair. The triangle support is near the $3,990 level, below which the price may test the $3,980 support.
The next main support is at $3,965 and the 50% Fib retracement level of the recent upside from the $3,883 low to $4,048 high. Therefore, dips towards the $4,000 and $3,980 levels are likely to find buyers. On the upside, the $4,040 and $4,050 levels are strong barriers. A successful hourly close above $4,050 is must for buyers to gain momentum. The next resistance is at $4,080, above which the price may test the $4,120 level.
Looking at the chart, bitcoin price seems to be consolidating above the $4,000 support. However, the $4,050 range resistance is acting as a strong offer zone. If the price continues to fail near $4,050, there is a risk of a downside reaction. In the mentioned case, the price might even clear the $4,000 and $3,980 supports. The next level where buyers are likely to take a stand is near $3,965 and the 100 hourly SMA.
Technical indicators:
Hourly MACD – The MACD is slowly moving back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently moving lower and it could break the 50 level.
Major Support Levels – $4,000 followed by $3,965.
Major Resistance Levels – $4,040, $4,050 and $4,080.
