- Bitcoin price traded to a new weekly high above $4,060 and later declined sharply against the US Dollar.
- The price broke the key $3,960 support level and tested the next main support at $3,875.
- There is a short-term connecting bearish trend line formed with resistance near $4,015 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The recent rebound was positive, but it won’t be easy for buyers to reclaim $4,000 and $4,020.
Bitcoin price rebounded sharply after a massive drop below $3,900 against the US Dollar. BTC must climb above $4,000 to move back in a positive zone and revisit $4,060.
Bitcoin Price Analysis
Yesterday, there was an upside extension in bitcoin price above the $4,020 resistance against the US Dollar. The BTC/USD pair broke the $4,050 resistance and traded to a new monthly high at $4,065. However, buyers failed to stay in control, resulting in a sharp decline below $4,050 and $4,020. The price even broke the $4,000 support and settled below the 100 hourly simple moving average. The decline was strong as the price even failed to hold the $3,950 and $3,900 support levels.
However, the next key support at $3,875 prevented further declines. A swing low was formed at $3,872 and later the price bounced back sharply. It broke the $3,900 resistance and the 23.6% Fib retracement level of the recent decline from the $4,065 high to $3,872 low. More importantly, the price rebounded above the $3,950 resistance level. Finally, there was a close above the 50% Fib retracement level of the recent decline from the $4,065 high to $3,872 low.
At the moment, the price is facing a strong resistance near $3,990 and the 100 hourly simple moving average. The main resistance is near $4,000 and the 61.8% Fib retracement level of the recent decline from the $4,065 high to $3,872 low. Besides, there is a short-term connecting bearish trend line formed with resistance near $4,015 on the hourly chart of the BTC/USD pair. Therefore, a break above the $4,000 and $4,020 resistance levels is must for additional gains in the coming sessions.
Looking at the chart, bitcoin price rebounded nicely from the $3,875 support level. However, buyers might find it difficult to gain strength above $4,000 and $4,020. If they continue to face hurdles, there could be another bearish reaction below the $3,950 and $3,920 support levels.
Technical indicators:
Hourly MACD – The MACD is slowly moving in the bullish zone, with a positive bias.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting higher, but it is still well below the 50 level.
Major Support Levels – $3,950 followed by $3,920.
Major Resistance Levels – $4,000, $4,020 and $4,060.