- Bitcoin price failed to gain momentum above $5,350 and corrected lower against the US Dollar.
- The price declined below the $5,300 level and tested the key $5,200 support area.
- There is a crucial bullish trend line in place with support at $5,245 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is approaching the next key break either above the $5,300 resistance or towards $5,200.
Bitcoin price recently corrected lower, but it remained well supported against the US Dollar. BTC is now preparing for the next break and it could surge above $5,300 and $5,350.
Bitcoin Price Analysis
In the past two days, bitcoin price made a few attempts to break the $5,350 resistance against the US Dollar. The BTC/USD pair failed to gain momentum above $5,350 and recently corrected lower. It broke the $5,300 and $5,250 support levels. There was even a break below the $5,220 level and the 100 hourly simple moving average. However, the $5,200 support area acted as a strong support and the price recently bounced back above $5,220 and $5,250.
There was a break above the 50% Fib retracement level of the recent decline from the $5,348 high to $5,200 low. However, the $5,315 level acted as a strong resistance. It represents the 76.4% Fib retracement level of the recent decline from the $5,348 high to $5,200 low. There is also a crucial bullish trend line in place with support at $5,245 on the hourly chart of the BTC/USD pair. It seems like the pair is approaching the next key break either above the $5,300 resistance or towards $5,200.
If there is an upside break above the trend line and $5,300, there could be more gains. The next important resistance is at $5,350, above which the price could accelerate towards the $5,400 resistance. Conversely, if there is a downside break below $5,250 and $5,245, the price could revisit the $5,200 support area. Any further losses may put a lot of pressure on the bulls and the price is likely to slide towards the $5,100 level.
Looking at the chart, bitcoin price is clearly preparing for the next major break either above $5,300 or below $5,245. The chances of an upside break are high considering the current price action and the $5,200 support area. If the bulls fail to gain strength above $5,300, there could be a sharp drop below the $5,245, $5,200 and $5,160 support levels in the near term.
Technical indicators:
Hourly MACD – The MACD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently near the 50 level.
Major Support Levels – $5,245 followed by $5,200.
Major Resistance Levels – $5,300, $5,350 and $5,400.