Key Points
- Bitcoin price is slowly recovering and it is currently placed above $4,400 against the US Dollar.
- There was a break above a short term contracting triangle with resistance at $4,480 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price may perhaps continue to rise towards the $4,760 and $4,934 levels in the near term.
Bitcoin price is forming a decent support above $4,400 against the US Dollar. BTC/USD is likely to recover towards $4,934 in the short term.
Bitcoin Price Analysis
Yesterday, we saw a minor upside correction from the $4,038 swing low in bitcoin price against the US Dollar. The BTC/USD pair climbed higher and broke the $4,220 and $4,350 resistance levels. The price also succeeded in clearing the 50% Fib retracement level of the last drop from the $4,765 swing high to $4,038 low. It opened the doors for more gains and the price moved above the $4,500 resistance.
Moreover, there was a break above a short term contracting triangle with resistance at $4,480 on the hourly chart of the BTC/USD pair. These are positive signs since the price is now placed above the $4,440 and $4,220 supports. An immediate resistance is near $4,592 and the 76.4% Fib retracement level of the last drop from the $4,765 swing high to $4,038 low. Above $4,600, the price is likely to extend gains towards the $4,765 swing high. The final target could be the $4,934 level, which is the 1.236 Fib extension level of the last drop. On the downside, an immediate support is at $4,440, below which the price could test $4,220.
Looking at the chart, bitcoin price seems to be consolidating above the $4,220 support. There are positive signs emerging, which could lead the price higher towards $4,750 and $4,934.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently just near the 50 level.
Major Support Level – $4,220
Major Resistance Level – $4,750