- Bitcoin price is placed nicely above the $ 3,965 and $ 3,980 support levels against the US Dollar.
- There is a short term triangle forming with resistance at $ 4,045 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price may continue to move higher towards $ 4,250 if there is a clear break above $ 4,080.
Bitcoin price is gaining bullish momentum above $ 4,000 against the US Dollar. BTC remains supported on dips and it may soon climb above the $ 4,150 and $ 4,200 resistances.
Bitcoin Price Analysis
Yesterday, we discussed the key support at $ 3,940 for bitcoin price against the US Dollar. The BTC/USD pair stayed above the mentioned support and it slowly moved above $ 3,965 and $ 3,980. Buyers pushed the price above the $ 4,000 level. There was a break above the 23.6% Fib retracement level of the last drop from the $ 4,114 swing high to $ 3,965 swing low. It opened the doors for more gains above $ 4,050 and the price is now well above the 100 hourly simple moving average.
An initial resistance is near the $ 4,040 level. It represents the 50% Fib retracement level of the last drop from the $ 4,114 swing high to $ 3,965 swing low. More importantly, there is a short term triangle forming with resistance at $ 4,045 on the hourly chart of the BTC/USD pair. Therefore, a break above the triangle and $ 4,050 may open the doors for more gains in the near term. The next resistance is at $ 4,085, above which the price may climb towards the $ 4,150 and $ 4,200 levels. An intermediate resistance is the 1.236 Fib extension level of the last drop near $ 4,140.
Looking at the chart, bitcoin price is trading with a bullish tone above the $ 3,965 support. If there is a downside reaction below $ 3,965, the price may decline towards the $ 3,940 and $ 3,920 support levels. The main support below $ 3,920 is at $ 3,860.
Hourly MACD – The MACD for BTC/USD is slowly gaining pace in the bullish zone, with a positive bias.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 55 level, with a bullish angle.
Major Support Level – $ 3,965
Major Resistance Level – $ 4,085