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- Bitcoin price formed a strong support near the $3,550 level and traded higher against the US Dollar.
- There was a break above a major bearish trend line with resistance at $3,610 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair broke the $3,650 and $3,700 resistance levels to move into a positive zone.
- A high was formed at $3,732 before the price started a downside correction.
Bitcoin price gained traction and broke the key $3,600 resistance against the US Dollar. BTC is now placed nicely in a positive zone and dips remain supported near $3,620 and $3,600.
Bitcoin Price Analysis
There was a brief consolidation this past week above the $3,550 support in bitcoin price against the US Dollar. The BTC/USD pair formed a strong support near the $3,550 level and later traded higher. The price gained traction and broke many resistances, including $3,580 and $3,600. It opened the doors for more gains and the price even settled above $3,600 and the 100 hourly simple moving average. During the upward move, there was a break above a major bearish trend line with resistance at $3,610 on the hourly chart of the BTC/USD pair.
The pair even cleared the $3,700 resistance and traded to a new weekly high at $3,732. Later, there was a downside correction below the $3,700 level. Sellers pushed the price below the 23.6% Fib retracement level of the last wave from the $3,553 low to $3,732 high. However, there are many supports near the $3,640 and $3,620 levels. An initial support is $3,645 and the 50% Fib retracement level of the last wave from the $3,553 low to $3,732 high.
The main support is near the $3,620 level (the previous breakout resistance). It also coincides with the 61.8% Fib retracement level of the last wave from the $3,553 low to $3,732 high. Therefore, if there is a downside correction below $3,660, the price could find support near the $3,640 and $3,620 levels. On the upside, an initial resistance is near the $3,700 level, above which the price may perhaps test $3,750.
Looking at the chart, bitcoin price clearly broke a few important resistances near $3,600 to move into a bullish zone. The current price action is positive, with chances of more gains above $3,700 and $3,750. The next key resistance above $3,750 is near the $3,880 level.
Technical indicators
Hourly MACD – The MACD is placed heavily in the bullish zone, signaling a strong upward move in the short term.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently retreating from the overbought levels.
Major Support Levels – $3,640 followed by $3,620 and $3,600.
Major Resistance Levels – $3,700, $3,720 and 3,740.
