- Bitcoin price started a decent recovery after trading as low as $3,672 against the US Dollar.
- The price climbed above the $3,730 and $3,790 resistance levels to move into a positive zone.
- There was a break above a major bearish trend line with resistance at $3,750 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair struggled to break the $3,865 resistance, but it is likely to trade further higher.
Bitcoin price rallied and moved towards the $3,850 and $3,865 resistances against the US Dollar. BTC could extend gains above $3,865 and $3,910 resistances in the coming sessions.
Bitcoin Price Analysis
In the past few days, there was a steady drop from the $3,910 swing high in bitcoin price against the US Dollar. The BTC/USD pair declined below the $3,800 and $3,730 support levels. Finally, the price traded to a new monthly low at $3,672 and later formed a base for the next upward move. There was a sharp rally above the $3,730 and $3,750 resistance levels. Besides, there was a break above the 50% Fib retracement level of the last drop from the $3,910 high to $3,672 low.
More importantly, there was a break above a major bearish trend line with resistance at $3,750 on the 4-hours chart of the BTC/USD pair. Finally, the pair settled above the $3,790 resistance and the 55 simple moving average (4-hours). The pair tested the key $3,865-3,880 resistance area and the 76.4% Fib retracement level of the last drop from the $3,910 high to $3,672 low. Sellers emerged and the price corrected below the $3,840 level. On the downside, there is a strong support formed near $3,790 and the 55 simple moving average (4-hours).
As long as the price is above $3,790, it could extend gains above the key $3,865-3,880 resistance area. The next stop for buyers could be near the $3,967 level. It represents the 1.136 Fib extension level of the last drop from the $3,910 high to $3,672 low. Furthermore, if buyers remain in action, the price could revisit the $4,000 and $4,060 resistance levels.
Looking at the chart, bitcoin price clearly moved back in a positive zone above $3,790. If it fails to stay above $3,790, there could be a fresh decline towards the $3,750 support area. The main support is near the lower end of the range at $3,730.
4 hour MACD – The MACD moved strongly into the bullish zone, with a positive bias.
4 hour RSI (Relative Strength Index) – The RSI surged above the 50 level, tested the 65 level and it is currently flat near 60.
Key Support Levels – $3,790 and 3,750.
Key Resistance Levels – $3,865, 3,880 and $3,965.