Key Points
- Bitcoin price is grinding higher and it recently broke the $3,900 resistance against the US Dollar.
- There is a key ascending channel formed with support at $3,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price may decline a few points before it makes an attempt to clear the $4,000 resistance.
Bitcoin price is showing positive signs above $3,800 against the US Dollar. BTC remains well supported on the downside for more gains above $4,000.
Bitcoin Price Analysis
Yesterday, we discussed that bitcoin price remains buy on dips near the $3,700 level against the US Dollar. The BTC/USD pair remained in a nice uptrend and it moved above the $3,820 and $3,900 resistance levels. The price traded as high as $3,923 and it is currently correcting lower. It broke the $3,900 support, but it is placed well above the 100 hourly simple moving average.
At the outset, the price is testing the 23.6% Fib retracement level of the recent wave from the $3,646 low to $3,923 high. More importantly, there is a key ascending channel formed with support at $3,850 on the hourly chart of the BTC/USD pair. Should there be a downside break below the channel support, the price may test the $3,780 support. It represents the 50% Fib retracement level of the recent wave from the $3,646 low to $3,923 high. Therefore, if the price corrects lower in the short term, buyers may appear near $3,850 or $3,780. On the upside, a break above the $3,900 and $3,930 levels may push the price towards $4,000.
Looking at the chart, bitcoin price is trading nicely above the $3,780 support. If there are more declines, the next key support is near the $3,750 and the 100 hourly SMA.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slowly moving in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is placed nicely above the 50 level.
Major Support Level – $3,780
Major Resistance Level – $3,930