- Bitcoin price struggled to break the $5,190-5,200 resistance area and declined against the US Dollar.
- The price revisited the $4,940 support area and recently rebounded above $5,000.
- There is a crucial bearish trend line forming with resistance at $5,110 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could struggle in the short term, but bulls remain in control above $4,900.
Bitcoin price is showing a few signs of weakness against the US Dollar. However, BTC bulls are likely to protect dips near the $4,940 and $4,900 support levels in the near term.
Bitcoin Price Analysis
Yesterday, we saw a steady rise from the $4,940 support in bitcoin price against the US Dollar. The BTC/USD pair climbed above the $5,100 and $5,160 resistance levels. There was also a break above the $5,180 level, but the price struggled near the $5,190 resistance area (the previous support). Besides, it failed to surpass the 50% Fib retracement level of the last slide from the $5,465 high to $4,920 low. There was a topping pattern formed and the price declined below the $5,100 and $5,000 support levels.
It revisited the $4,940 support area and traded as low as $4,943. Recently, it rebounded higher and traded above the $5,000 resistance. Besides, bulls pushed the price above the $5,050 level and the 50% Fib retracement level of the recent drop from the $5,190 high to $4,943 low. However, the price is facing a strong resistance near the $5,090 level and the 100 hourly simple moving average. Besides, the 61.8% Fib retracement level of the recent drop from the $5,190 high to $4,943 low is also a hurdle.
More importantly, there is a crucial bearish trend line forming with resistance at $5,110 on the hourly chart of the BTC/USD pair. Above the trend line, the main resistance for bitcoin buyers is near the $5,190-5,200 zone. Therefore, it won’t be easy for bulls to gain traction above the $5,100 resistance in the short term.
Looking at the chart, bitcoin price might face offers near the $5,100 and $5,110 levels. If it breaks the $5,110 resistance, it may retest the $5,200 resistance zone. If not, there is a chance of another downside push towards the $4,940, $4,920 and $4,900 support levels. A significant decline below $4,900 is very unlikely and bulls could buy big if there is a dip towards $4,900 or even $4,850.
Hourly MACD – The MACD is slowly moving back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD recovered above 40, but it is still below 50.
Major Support Levels – $5,000 followed by $4,940.
Major Resistance Levels – $5,090, $5,110 and $5,190.
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* First published on newsbtc.com