Key Points
- Bitcoin price is back in the bullish zone and might soon break the $4600 level against the US Dollar.
- There is a crucial contracting triangle pattern forming with support at $4320 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
- The pair might continue to move higher and remains a buy on dips towards $4300.
Bitcoin price is trading with a positive sentiment above $4200 against the US Dollar. BTC/USD might soon gain traction and break $4600.
Bitcoin Price Uptrend
There were decent swing moves in Bitcoin price towards the $4400 level against the US Dollar. The price corrected lower once from the $4460 level and traded towards the $4150 support area. The downside move was limited by a major support area above $4100. The price recovered and moved back above the 61.8% Fib retracement level of the last decline from the $4464 high to $4137 low.
It is a positive sign and might take the price further above $4500. Now, since the price is above the 76.4% Fib retracement level of the last decline from the $4464 high to $4137 low, there is a chance of an upside break above $4464. Once there is a break above $4464, the price might clear $4500 to test $4600. The 1.236 extension of the last decline from the $4464 high to $4137 low at $4542 is an intermediate resistance.
The price is likely to test the 1.618 extension of the last decline from the $4464 high to $4137 low at $4667 is the current trend remains intact. Buying dips remain a good option towards $4300 as long as the price is above a crucial contracting triangle pattern with support at $4320 on the 4-hours chart of BTC/USD.
Looking at the technical indicators:
4-hours MACD – The MACD is slowly moving in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is now well above the 50 level.
Major Support Level – $4300
Major Resistance Level – $4540
Charts courtesy – SimpleFX