- Bitcoin price traded above the $3,940 level recently before correcting lower against the US Dollar.
- The price is following a solid bullish path and buyers seem to be in control above $3,800.
- There is a short term declining channel in place with resistance at $3,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is approaching a crucial support area near the $3,840 level.
Bitcoin Price Analysis
Recently, there was a sharp decline in bitcoin price below the $3,840 and $3,800 levels against the US Dollar. The BTC/USD pair spiked below the $3,775 level and traded as low as $3,760. Later, there was a sharp recovery above the $3,800 resistance level. The rebound was strong as the price even broke the $3,840 and $3,900 resistance levels. The price traded to a new weekly high above $3,940 before correcting lower. A high was formed at $3,946 and later the price dipped below the $3,900 level.
There was a break below the 23.6% Fib retracement level of the recent wave from the $3,760 low to $3,946 high. Sellers even pushed the price below the $3,880 level and the 100 hourly simple moving average. However, the decline was stopped near the $3,850 support. The 50% Fib retracement level of the recent wave from the $3,760 low to $3,946 high also acted as a support. On the downside, there is a crucial support near $3,830 and an ascending channel on the hourly chart of the BTC/USD pair.
At the outset, there is a short term declining channel in place with resistance at $3,900 on the same chart. In the short term, there is a risk of a downside push towards $3,840 or $3,830 before the price could climb higher. On the upside, a break above the $3,900 resistance is must for a fresh upward move. In the mentioned case, the price could spike above the $3,946 high. The next key resistance is near the $4,000 and $4,050 levels.
Looking at the chart, bitcoin price is placed nicely in an uptrend above the $3,830 support. There might be a few bearish moves, but the price remains supported for more gains above $3,900 in the near term.
Hourly MACD – The MACD is slightly placed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD just moved below the 50 level, but it could bounce back.
Major Support Level – $3,840 followed by $3,830.
Major Resistance Level – $3,900, $3,940 and 4,000.
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