- Bitcoin price trading in a tight range above the $3,375 support area against the US Dollar.
- There is a key connecting bullish trend line formed with support at $3,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price might correct higher in the short term towards the $3,430 and $3,350 resistances.
Bitcoin price is struggling to gain bullish momentum above $3,450 against the US Dollar. BTC price might continue to trade in a range until trading volumes and volatility picks up.
Bitcoin Price Analysis
In the past three sessions, there were mostly range moves in bitcoin price above the $3,375 support against the US Dollar. The BTC/USD pair stayed above the $3,400 support level and trading in a $25 range. It moved above the 23.6% Fib retracement level of the last drop from the $3,494 swing high to $3,390 low. However, the price struggled to gain momentum above $3,430 and the 100 hourly simple moving average. The current price action is neutral-to-bearish, with resistances near $3,430 and $3,450.
An intermediate resistance is near the $3,440 level. It represents the 50% Fib retracement level of the last drop from the $3,494 swing high to $3,390 low. If there is a successful break above the $3,440 and $3,450 resistance levels, the price might trade towards the $3,480 resistance. On the downside, an initial support is near the $3,400 level. There is also a key connecting bullish trend line formed with support at $3,400 on the hourly chart of the BTC/USD pair. Below the trend line support, the pair could trade towards the $3,375 support level. The next key support is at $3,350 and $3,345.
Looking at the chart, bitcoin price might continue to trade in a range, with bullish moves toward $3,440. Having said that, a solid upward move requires an increase in volatility and volume. If not, there is a risk of a bearish break towards $3,320.
Technical indicators
Hourly MACD – The MACD is currently flat in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level, with a bullish angle.
Major Support Level – $3,400
Major Resistance Level – $3,440