- Bitcoin price stayed above the $3,800 support area and recovered recently against the US Dollar.
- The price is trading above the $3,840 level and facing a strong resistance near the 100 hourly SMA.
- There is a key bearish trend line in place with resistance at $3,865 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could rally sharply if there is a close above $3,880 and the 100 hourly SMA.
Bitcoin price rebounded nicely from the $3,800 support against the US Dollar. BTC is currently sighting an upside break above the $3,880 resistance and the 100 hourly SMA.
Bitcoin Price Analysis
Yesterday, we saw a downside reaction below the $3,860 support in bitcoin price against the US Dollar. The BTC/USD pair tested the key $3,800 support level and later started an upside correction. A swing low was formed at $3,801 and the price corrected above the $3,840 level. Buyers were successful in pushing the price above the $3,850 resistance as well. Besides, there was a break above the 50% Fib retracement level of the recent drop from the $3,910 swing high to $3,800 swing low.
However, the recovery faced a strong resistance near the $3,880 level and the 100 hourly simple moving average. More importantly, there is a key bearish trend line in place with resistance at $3,865 on the hourly chart of the BTC/USD pair. The pair also struggled to clear the 61.8% Fib retracement level of the recent drop from the $3,910 swing high to $3,800 swing low. At the moment, the price is consolidating just below the trend line, $3,870, and the 100 hourly SMA.
A successful break above the trend line and $3,880 could really boost the market sentiment. In the mentioned case, the price could climb above the $3,900 and $3,920 resistance levels. The next stop could be $3,960 or even $4,000. On the flip side, if there is a downside correction, the price may find buyers near the $3,840 level. The main support is near the $3,820 and $3,800 levels. If there is a downside break below $3,800, the price could move into a bearish zone in the near term.
Looking at the chart, bitcoin price seems to be preparing for a larger upside break above $3,880. Having said that, it won’t be easy for buyers to gain traction above $3,880 level and the 100 hourly simple moving average.
Hourly MACD – The MACD is placed is about to move into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level, with a bullish angle.
Major Support Levels – $3,840 followed by $3,800.
Major Resistance Levels – $3,865, $3,880 and $3,900.
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* First published on newsbtc.com