Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
- Bitcoin price declined sharply below the $3,750 support and tested $3,650 against the US Dollar.
- The price bounced back from the $3,653 low and broke the key $3,750 resistance.
- There was a break above a major bearish trend line with resistance at $3,785 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to gain bullish momentum above the $3,860 and $3,900 resistance levels.
Bitcoin price tumbled below $3,700 and later recovered sharply against the US Dollar. BTC is pointing bullish signals and it could continue to rise towards $4,000 in the near term.
Bitcoin Price Analysis
Yesterday, we discussed the chances of more losses if bitcoin price breaks the $3,750 support against the US Dollar. The BTC/USD pair did break the $3,750 support and declined below the $3,700 level. There was a sharp downward move and the price tested the $3,650 support. A new weekly low was formed at $3,653 and later the price bounced back. The recent recovery was strong as the price climbed above the $3,750 and $3,760 resistance levels.
There was a break above the 61.8% Fib retracement level of the recent decline from the $3,827 high to $3,653 low. More importantly, there was a break above a major bearish trend line with resistance at $3,785 on the hourly chart of the BTC/USD pair. It has opened the doors for more gains above the $3,800 level. BTC is currently trading above the 76.4% Fib retracement level of the recent decline from the $3,827 high to $3,653 low. Therefore, there are chances of more gains above the last swing high at $3,827. An immediate resistance is at $3,830 and the 100 hourly simple moving average.
If there is a break above the 100 hourly SMA, the price could climb towards the $3,860 resistance. A successful close above $3,860 and $3,900 will most likely set the tone for a rally towards the $4,000 resistance. In the mentioned case, the price may even climb above $4,050. On the other hand, an initial support is at $3,760, below which the price could test $3,700.
Looking at the chart, bitcoin price is slowly moving into the positive zone above $3,800. However, it must gain momentum above the $3,860 and $3,900 resistances to climb further higher. In the short term, there could be range moves before the price makes the next move either above $3,900 or dive back to $3,700.
Technical indicators
Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD climbed back above the 50 level.
Major Support Level – $3,750 followed by $3,720.
Major Resistance Level – $3,830, $3,860 and 3,900.
