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Bitcoin Price Analysis: BTC Poised for Further Appreciation

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  • Bitcoin price corrected lower below the $3,950 support against the US Dollar.
  • The price tested the $3,875 support level and recently bounced back sharply above $3,980.
  • There is a significant bullish trend line in place with support at $3,900 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair broke the key $3,950 resistance and moved into a fresh bull phase.

Bitcoin price reversed sharply from the $3,860 low against the US Dollar. BTC is back in an uptrend above $3,950 and it could continue higher towards the $4,040 resistance area.

Bitcoin Price Analysis

This past week, bitcoin price traded to a new monthly high at $4,054 and later corrected lower against the US Dollar. The BTC/USD pair started a substantial decline and broke the $3,950 and $3,900 support levels. There was even a close below the $3,950 level and the 55 simple moving average (4-hours). The price traded towards the $3,875 support and formed a low at $3,860. Buyers protected further losses and later a support base was formed near $3,875.

There is also a significant bullish trend line in place with support at $3,900 on the 4-hours chart of the BTC/USD pair. Finally, the price started a strong upward move and broke the $3,950 resistance. There was a break above the 50% Fib retracement level of the last slide from the $4,054 high to $3,860 low. Besides, the price surpassed a connecting bearish trend line with resistance at $3,948 on the same chart. Finally, the price climbed above $3,980 and the 55 simple moving average (4-hours).

The price is now trading near the 61.8% Fib retracement level of the last slide from the $4,054 high to $3,860 low. Once there is a break above the $4,000 and $4,010 resistance levels, the price could accelerate towards the $4,040 resistance. In the mentioned case, the price may even test the $4,054 swing high. The next key resistance levels are $4,100 and $4,180.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price clearly jumped back in a positive zone after trading as low as $3,860. The current price action is bullish above $3,950 suggesting more upsides above $4,000 and $4,010. If there is a downside correction, the $3,950 level might act as a solid support. Below $3,950, the highlighted bullish trend line with support at $3,900 could act as a strong buy zone in the near term.

Technical indicators

4 hour MACD – The MACD is gaining momentum in the bullish zone, with a positive bias.

4 hour RSI (Relative Strength Index) – The RSI recently climbed sharply above the 50 level and tested the 60 level.

Key Support Levels – $3,950 and 3,900.

Key Resistance Levels – $4,000, $4,010 and $4,050.

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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