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Bitcoin Price Analysis: BTC In Strong Uptrend Above $5,700

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  • Bitcoin price rallied significantly and traded towards the $6,000 level against the US Dollar.
  • The price traded as high as $5,974 and it recently corrected lower towards $5,655.
  • There is a major ascending channel in place with support at $5,730 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair remains in a strong uptrend and it could break $6,000 as long as the $5,700 support is intact.

Bitcoin price started a strong rally above $5,600 and $5,800 against the US Dollar. BTC traded close to the $6,000 barrier and it is currently correcting gains.

Bitcoin Price Analysis

This week, bitcoin price started a steady rise above the $5,400 and $5,500 resistances against the US Dollar. The BTC/USD pair broke the key $5,700 resistance level and settled above the 55 simple moving average (4-hours). The uptrend was such that the price even broke $5,800 and traded close to the $6,000 level. A new 2019 high was formed at $5,974 on Coinbase and the price recently corrected lower. It traded below the $5,850 and $5,780 support levels.

There was even a spike below $5,700, but the price remained well above the 55 simple moving average (4-hours). A swing low was formed at $5,655 and the price is currently climbing higher. It is testing the $5,800 level, and the 50% Fib retracement level of the last decline from the $5,974 high to $5,655 low. On the upside, an immediate resistance is near the $5,850 and $5,855 levels. Besides, the 61.8% Fib retracement level of the last decline from the $5,974 high to $5,655 low is also near the $5,852 level to act as a resistance. Therefore, a clear break above the $5,855 resistance may push the price towards the $5,950 and $6,000 levels.

On the downside, there are many supports near $5,730 and $5,700. More importantly, there is a major ascending channel in place with support at $5,730 on the 4-hours chart of the BTC/USD pair. If there is a fresh decline, the pair is likely to find a strong buying interest near $5,730 and $5,700. A convincing close below the channel support and $5,700 might start a strong downside correction.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price is in a clear uptrend above $5,700. It could soon make an attempt to surpass the main $6,000 resistance level. If it continues to struggle near $5,850 and $5,950, there is a risk of a drop towards $5,500 and the 55 SMA.

Technical indicators

4 hour MACD – The MACD is placed nicely in the bullish zone.

4 hour RSI (Relative Strength Index) – The RSI is currently moving higher towards the 60 level.

Key Support Levels – $5,730 and $5,700.

Key Resistance Levels – $5,850, $5,950 and $6,000.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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