Bitcoin is currently rising and showing positive signs from the $4,350 swing low against the US Dollar. BTC price is likely to accelerate higher towards $6,000 if it settles above the 100 hourly SMA.
- Bitcoin is recovering nicely from the $4,350 and $4,500 support levels against the US Dollar.
- It is back above the $5,000 level and it is trading with a bullish angle.
- There is a major bearish trend line forming with resistance near $5,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to accelerate higher towards the $6,000 resistance if it settles above $5,350.
Bitcoin Could Continue Higher
Yesterday, we saw a strong double top formation for bitcoin near the $6,000 resistance against the US Dollar. BTC price remained in a bearish zone and declined below the $5,200 and $5,000 support levels.
The price even broke the neckline support and settled below the 100 hourly simple moving average. Finally, the price spiked below the $4,500 support and traded as low as $4,354.
It is currently correcting higher and trading above the $5,000 resistance. There was a break above the 50% Fib retracement level of the recent decline from the $5,986 high to $4,354 low.
The current price action is positive, but bitcoin seems to be facing hurdles near the $5,300 area and the 100 hourly SMA. More importantly, there is a major bearish trend line forming with resistance near $5,350 on the hourly chart of the BTC/USD pair.
The 61.8% Fib retracement level of the recent decline from the $5,986 high to $4,354 low is also acting as a resistance. If there is a successful close above the $5,350 resistance and the 100 hourly SMA, the price is likely to continue higher.
An initial resistance is near the $5,600 resistance, above which the price is likely to accelerate higher towards the $5,980 and $6,000 resistance levels. Any further gains is likely to set the stage for a test of the main $6,500 resistance area.
Yet Another Failure?
If bitcoin fails to continue above the $5,350 resistance and the 100 hourly SMA, it is likely to resume its decline. An initial support is near the $5,050 and $5,000 levels.
A clear break below the $5,000 support level could put a lot of pressure on the bulls. In the mentioned case, the price may perhaps continue lower towards $4,500.
Technical indicators:
Hourly MACD – The MACD is slowly losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently dipping from 60, but it is above the 50 level.
Major Support Levels – $5,000 followed by $4,500.
Major Resistance Levels – $5,350, $5,600 and $6,000.