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Key Points
- Bitcoin price formed a support base near $3,625 and later moved higher against the US Dollar.
- There was a break above a major bearish trend line with resistance at $3,710 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price is placed nicely above the $3,700 level and it may continue to move higher in the near term.
Bitcoin price is gaining bullish momentum against the US Dollar. BTC may dip a few points, but it remains supported near $3,700 and $3,625.
Bitcoin Price Analysis
Recently, there was a downside reaction from the $4,032 high in bitcoin price against the US Dollar. The BTC/USD pair traded below the $3,900 and $3,820 support levels. Later, the price declined below the $3,700 level before buyers appeared near the $3,625 support. A base was formed and the price started a fresh upward move. It broke the $3,700 resistance and the 100 hourly simple moving average.
The price cleared the 23.6% Fib retracement level of the last decline from the $4,032 high to $3,625 low. Moreover, there was a break above a major bearish trend line with resistance at $3,710 on the hourly chart of the BTC/USD pair. The price spiked above the 50% Fib retracement level of the last decline from the $4,032 high to $3,625 low. However, there was no proper close above the $3,820-3,850 resistance area. At the outset, the price is correcting lower and it may dip a few points towards the $3,720 or $3,700 levels.
Looking at the chart, bitcoin price remains well supported on the downside above $3,700 and $3,625. On the upside, buyers need to clear the $3,850 and $3,890 resistance levels to push the price towards $4,000.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is showing positive signs in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is placed well above the 50 level with a minor bearish angle.
Major Support Level – $3,700
Major Resistance Level – $3,850
