- Bitcoin price jumped higher recently and traded to a new weekly high above $4,140 against the US Dollar.
- The price traded as high as $4,142 and it is currently consolidating gains above key supports.
- There is a new contracting triangle forming with support near $4,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could decline in the short term, but it remains supported near $4,100 and $4,050.
Bitcoin price is trading with a strong uptrend above the $4,040 pivot level against the US Dollar. BTC is likely to break the $4,150 resistance and it could surge above $4,200.
Bitcoin Price Analysis
After forming a strong support near the $4,040 level, bitcoin price climbed above $4,100 against the US Dollar. The BTC/USD pair followed a decent bullish path, with a couple of sharp moves towards $4,060. Finally, the price gained bullish momentum and traded above the $4,100 and $4,120 resistance levels. A new weekly high was formed near the $4,142 level and the price is currently trading in a range.
An initial support is near the $4,120 level and the 23.6% Fib retracement level of the recent rise from the $4,052 low to $4,142 high. However, the main support is near the $4,100 level. More importantly, there is a new contracting triangle forming with support near $4,100 on the hourly chart of the BTC/USD pair. If the pair breaks the triangle support, it could test the $4,060 level and the 100 hourly simple moving average.
On the upside, the triangle resistance is near the $4,145 and $4,150 levels. A clear break above the $4,150 resistance could open the doors for more gains above $4,200. The next significant resistance is at $4,240, above which the price may increase to $4,400. On the flip side, if there is a fresh downside correction, buyers might take a stand near the $4,060 support or the 100 hourly simple moving average.
Looking at the chart, bitcoin price is clearly following a solid bullish path above the $4,100 and $4,060 support levels. In the short term, there could be range moves above $4,100 before the price spikes above the $4,145 resistance. The most important support is near the $4,040 pivot level. There is also a major bullish trend line in place with support at $4,055 on the same chart. Therefore, there are many buy zones formed, starting with $4,100 and up to near $4,040.
Technical indicators:
Hourly MACD – The MACD is placed heavily in the bullish zone, with positive signs.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently moving lower from the 72 level.
Major Support Levels – $4,100 followed by $4,060.
Major Resistance Levels – $4,145, $4,150 and $4,200.