- Bitcoin price is slowly recovering and it is currently placed above $ 4,400 against the US Dollar.
- There was a break above a short term contracting triangle with resistance at $ 4,480 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price may perhaps continue to rise towards the $ 4,760 and $ 4,934 levels in the near term.
Bitcoin price is forming a decent support above $ 4,400 against the US Dollar. BTC/USD is likely to recover towards $ 4,934 in the short term.
Bitcoin Price Analysis
Yesterday, we saw a minor upside correction from the $ 4,038 swing low in bitcoin price against the US Dollar. The BTC/USD pair climbed higher and broke the $ 4,220 and $ 4,350 resistance levels. The price also succeeded in clearing the 50% Fib retracement level of the last drop from the $ 4,765 swing high to $ 4,038 low. It opened the doors for more gains and the price moved above the $ 4,500 resistance.
Moreover, there was a break above a short term contracting triangle with resistance at $ 4,480 on the hourly chart of the BTC/USD pair. These are positive signs since the price is now placed above the $ 4,440 and $ 4,220 supports. An immediate resistance is near $ 4,592 and the 76.4% Fib retracement level of the last drop from the $ 4,765 swing high to $ 4,038 low. Above $ 4,600, the price is likely to extend gains towards the $ 4,765 swing high. The final target could be the $ 4,934 level, which is the 1.236 Fib extension level of the last drop. On the downside, an immediate support is at $ 4,440, below which the price could test $ 4,220.
Looking at the chart, bitcoin price seems to be consolidating above the $ 4,220 support. There are positive signs emerging, which could lead the price higher towards $ 4,750 and $ 4,934.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently just near the 50 level.
Major Support Level – $ 4,220
Major Resistance Level – $ 4,750