- Bitcoin price is likely preparing for the next key break above the $5,100 resistance against the US Dollar.
- Ravencoin (RVN) and loopring (LRC) gained more than 10% today.
- There is a key bullish trend line in place with support at $4,880 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair seems to trading in a contracting range below the $5,100 resistance area.
Bitcoin (BTC) is trading in a tight range and seems to be preparing for the next key break. Ethereum, ripple, bitcoin cash and litecoin are consolidating, while Ravencoin (RVN) and loopring (LRC) rallied 10%.
Bitcoin Price Analysis
In the past sessions, there were mostly range moves below the $5,100 resistance in bitcoin price against the US Dollar. Earlier, we saw a sharp downside correction in the BTC/USD pair from the $5,350-5,360 resistance area. The pair declined below the $5,000 support area and tested the $4,750 zone. It settled below the $5,200 support and the $5,100 pivot levels. A swing low was formed above $4,750 and the price rebounded above the 23.6% Fib retracement level of the last decline from the $5,361 high to $4,752 low.
At the moment, the price seems to be trading in a range above $4,900 level and 100 hourly SMA. However, there is a strong resistance forming near the $5,060 and $5,100 levels. The 50% Fib retracement level of the last decline from the $5,361 high to $4,752 low is also near the $5,060 level. There were multiple rejections near the $5,100 level and it looks like bulls are struggling to gain momentum. To the downside, there is a key bullish trend line in place with support at $4,880 on the hourly chart of the BTC/USD pair.
The price is likely setting up for the next break either above the $5,100 resistance or below the trend line support. The next move in bitcoin is likely to lift Ethereum, ripple, bitcoin cash and litecoin in the same direction. Today, a few small caps coins started a solid upward move such as AOA, Ravencoin (RVN), loopring (LRC), ICON (ICX) and ZIL. The main performers are AOA (gained nearly 36%) and RVN (up close to 12%).
Looking at the chart, BTC price could gain bullish momentum if it breaks the $5,060 and $5,100 resistance levels. If buyers continue to fail near the $5,100 resistance zone, there could be an extended downside correction below $4,900 and $4,750.
Technical indicators:
Hourly MACD – The MACD is slowly gaining traction in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level.
Major Support Levels – $4,900 followed by $4,800.
Major Resistance Levels – $5,060, $5,100 and $5,200.