Analysis

Bitcoin (BTC) Price Watch: Important Reversal Signs Emerge

  • Bitcoin price made a few swing moves above the $ 3,800 and $ 3,830 supports against the US Dollar.
  • The price managed to settle above the $ 3,850 level and the 100 hourly simple moving average.
  • This week’s major bearish trend line with resistance at $ 3,845 was breached on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair tested the $ 3,870 level and it is currently consolidating, with positive signs.

Bitcoin price climbed above key resistance levels against the US Dollar. BTC is trading with a bullish angle and it could rise above $ 3,900 and $ 3,940 in the coming sessions.

Bitcoin Price Analysis

The past three sessions were very volatile, with swing moves in bitcoin price above $ 3,800 against the US Dollar. The BTC/USD pair formed a large candle, taking out both short and long positions below the $ 3,900 resistance. The last swing low was formed at $ 3,832 before the price climbed higher. Buyers managed to push the price above the $ 3,850 resistance and the 100 hourly simple moving average.

More importantly, this week’s major bearish trend line with resistance at $ 3,845 was breached on the hourly chart of the BTC/USD pair. The pair failed to gain momentum after the break, but it settled above the trend line and $ 3,850, which is a positive sign. The price traded as high as $ 3,872 and it is currently correcting lower. It broke the $ 3,860 support and the 23.6% Fib retracement level of the recent wave from the $ 3,832 low to $ 3,872 high. However, there are many supports on the downside near $ 3,850 and the 100 hourly SMA.

The 50% Fib retracement level of the recent wave from the $ 3,832 low to $ 3,872 high is also near $ 3,850. Besides, there is a connecting bullish trend line formed near $ 3,845 on the same chart. Therefore, there are chances of bullish moves as long as the price is above $ 3,845. On the upside, the price could break the $ 3,875 level and test $ 3,900. If buyers clear the $ 3,900 resistance, the price may rise towards the $ 4,000 barrier.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price is trading in a positive zone above $ 3,850. The current technical structure suggests more upsides above $ 3,875 and $ 3,900 in the coming sessions. On the other hand, a downside break below $ 3,850 and $ 3,840 may negate the current bullish bias. The next key supports are near $ 3,825 and $ 3,800.

Technical indicators:

Hourly MACD – The MACD is moving nicely in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level, with a bullish angle.

Major Support Levels – $ 3,840 followed by $ 3,825.

Major Resistance Levels – $ 3,875, $ 3,880 and $ 3,900.

Let’s block ads! (Why?)

Analysis – NewsBTC

Leave a Reply

Your email address will not be published. Required fields are marked *