HomeBitcoin NewsBitcoin Price Analysis: BTC Primed To Revisit $4,000

Bitcoin Price Analysis: BTC Primed To Revisit $4,000

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  • Bitcoin price started a decent recovery after trading as low as $3,672 against the US Dollar.
  • The price climbed above the $3,730 and $3,790 resistance levels to move into a positive zone.
  • There was a break above a major bearish trend line with resistance at $3,750 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair struggled to break the $3,865 resistance, but it is likely to trade further higher.

Bitcoin price rallied and moved towards the $3,850 and $3,865 resistances against the US Dollar. BTC could extend gains above $3,865 and $3,910 resistances in the coming sessions.

Bitcoin Price Analysis

In the past few days, there was a steady drop from the $3,910 swing high in bitcoin price against the US Dollar. The BTC/USD pair declined below the $3,800 and $3,730 support levels. Finally, the price traded to a new monthly low at $3,672 and later formed a base for the next upward move. There was a sharp rally above the $3,730 and $3,750 resistance levels. Besides, there was a break above the 50% Fib retracement level of the last drop from the $3,910 high to $3,672 low.

More importantly, there was a break above a major bearish trend line with resistance at $3,750 on the 4-hours chart of the BTC/USD pair. Finally, the pair settled above the $3,790 resistance and the 55 simple moving average (4-hours). The pair tested the key $3,865-3,880 resistance area and the 76.4% Fib retracement level of the last drop from the $3,910 high to $3,672 low. Sellers emerged and the price corrected below the $3,840 level. On the downside, there is a strong support formed near $3,790 and the 55 simple moving average (4-hours).

As long as the price is above $3,790, it could extend gains above the key $3,865-3,880 resistance area. The next stop for buyers could be near the $3,967 level. It represents the 1.136 Fib extension level of the last drop from the $3,910 high to $3,672 low. Furthermore, if buyers remain in action, the price could revisit the $4,000 and $4,060 resistance levels.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price clearly moved back in a positive zone above $3,790. If it fails to stay above $3,790, there could be a fresh decline towards the $3,750 support area. The main support is near the lower end of the range at $3,730.

Technical indicators

4 hour MACD – The MACD moved strongly into the bullish zone, with a positive bias.

4 hour RSI (Relative Strength Index) – The RSI surged above the 50 level, tested the 65 level and it is currently flat near 60.

Key Support Levels – $3,790 and 3,750.

Key Resistance Levels – $3,865, 3,880 and $3,965.

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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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