Bitcoin (BTC) Price Defies Gravity, Looks to Trade Higher

Aayush Jindal

1 year ago

2 mins read

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The price retested the $5,360 resistance and it looks set to trade further higher in the near term.
There was a break above a short term contracting triangle with resistance at $5,155 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to surge towards $5,500 or even $5,600 once it successfully clear the $5,360 resistance.

Bitcoin price is climbing higher towards key resistances against the US Dollar. BTC could accelerate gains along with Ethereum once it clears the $5,360 resistance area.

Bitcoin Price Analysis

Recently, we saw a downside correction towards the $4,800 support in bitcoin price against the US Dollar. The BTC/USD pair tested the $4,750 support and later recovered above $4,800 and $4,900. It slowly recovered and climbed above the $5,000 resistance and the 100 hourly simple moving average. Finally, a solid support base was formed near the $5,000 level before the price traded above the $5,120 and $5,200 resistance levels.

During the rise, there was a break above a short term contracting triangle with resistance at $5,155 on the hourly chart of the BTC/USD pair. The pair even traded above the $5,300 level and retested the key $5,360 resistance area. It is currently consolidating gains below the $5,360 resistance. An initial support is near the 23.6% Fib retracement level of the recent wave from the $4,903 low to $5,359 high.

However, the main support is near the $5,200 level. If there is an extended downside correction, the price could test the $5,120 support area. Besides, the 50% Fib retracement level of the recent wave from the $4,903 low to $5,359 high is near the $5,130 level to act as a support. To the topside, the $5,360 level is a strong resistance. A clear break above the $5,360 resistance is likely to start a solid upward move towards the $5,400 and $5,500 resistance levels.

Looking at the chart, bitcoin price seems to be preparing for a fresh increase above the $5,360 resistance. The main target for buyers this week could be $5,500 or $5,600. Conversely, if there is a downside correction, the $5,200 and $5,120 levels may act as a supports. The main support is at $5,000 and the 100 hourly SMA. A daily close below $5,000 might push the price back towards the $4,800 or $4,750 support area.

Technical indicators:

Hourly MACD – The MACD is placed nicely in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD tested the 75 level and it is currently correcting lower.

Major Support Levels – $5,200 followed by $5,120.

Major Resistance Levels – $5,360, $5,400 and $5,500.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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