Analysis

Bitcoin (BTC) Price Primed For Gains With Bullish Sentiment On Rise

  • Bitcoin price fund a strong support near the $ 4,920 level and later recovered against the US Dollar.
  • The price broke the $ 5,120 resistance level to move into a positive zone.
  • There was a break above a key bearish trend line with resistance at $ 5,080 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is now trading nicely above the $ 5,150 level and the 100 hourly simple moving average.

Bitcoin price rebounded nicely above $ 5,100 against the US Dollar. BTC is currently showing positive signs and a break above $ 5,200 is likely to accelerate gains above $ 5,250 in the near term.

Bitcoin Price Analysis

This past week, we saw a major downside correction below $ 5,200 in bitcoin price against the US Dollar. The BTC/USD pair even broke the $ 5,000 level and traded as low as $ 4,920. Later, the price consolidated in a range and formed a decent support above the $ 4,950 level. Finally, the price started a fresh increase and traded above the $ 5,040 and $ 5,120 resistance levels. Buyers gained traction and pushed the price above the $ 5,150 level and the 100 hourly simple moving average.

Besides, the price broke the 23.6% Fib retracement level of the last drop from the $ 5,464 high to $ 4,920 low. More importantly, there was a break above a key bearish trend line with resistance at $ 5,080 on the hourly chart of the BTC/USD pair. The pair is now trading nicely above the $ 5,150 level and the 100 hourly simple moving average. It traded close to the $ 5,200 resistance and the 50% Fib retracement level of the last drop from the $ 5,464 high to $ 4,920 low.

A break above the $ 5,200 level is needed for more gains. The next key resistance could be $ 5,255 and the 61.8% Fib retracement level of the last drop from the $ 5,464 high to $ 4,920 low. A successful close above the $ 5,260 level might open the doors for a strong rise towards the $ 5,330 level. On the downside, the recent resistance at $ 5,120 is likely to act a solid support.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price clearly climbed into a positive zone above the $ 5,120 level and the 100 hourly SMA. Dips from the current levels are likely find a strong buying interest above $ 5,100. On the upside, a break above the $ 5,200 and $ 5,260 levels could really boost the market sentiment in favor of buyers in the near term.

Technical indicators:

Hourly MACD – The MACD is currently placed nicely in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level and is correcting lower.

Major Support Levels – $ 5,150 followed by $ 5,120.

Major Resistance Levels – $ 5,200, $ 5,260 and $ 5,330.

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Analysis – NewsBTC

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