- Bitcoin price surged higher recently and traded to a new yearly high above $5,600 against the US Dollar.
- The price recently tested the key technical resistance at $5,631 and corrected lower.
- There is a major bullish trend line in place with support at $5,440 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair is likely to climb further higher towards $5,850 in the near term.
Bitcoin price climbed higher sharply above $5,500 and $5,600 against the US Dollar. BTC is likely to extend gains towards the next key resistance at $5,850, and dips remain supported.
Bitcoin Price Analysis
The past few sessions were super bullish since there were strong gains in bitcoin price above $5,450 against the US Dollar. Earlier, the BTC/USD pair traded as low as $4,899 and formed a decent support base above the $5,000 level. Finally, the price started an upward move above the $5,250 level and the 55 simple moving average (4-hours). The bulls were able to clear the $5,360 resistance and the 76.4% Fib retracement level of the major decline from the $5,491 high to $4,899 low.
It cleared the doors for more gains above the $5,400 level. The price traded to a new yearly high above the $5,550 level. It traded towards the $5,640 level and tested the 1.236 Fib extension level of the major decline from the $5,491 high to $4,899 low. Recently, there was a downside correction, but the $5,500 and $5,490 swing high acted as a strong support and prevented further losses. There was a fresh increase and it seems like the price is ready to surpass the $5,650 resistance.
The next major resistance is near the $5,850-60 area. It represents the 1.618 Fib extension level of the major decline from the $5,491 high to $4,899 low. Above $4,850, the price could test the next key resistance near the $4,980 level. Conversely, if there is a downside correction, the price could test the $5,400 support. There is also a major bullish trend line in place with support at $5,440 on the 4-hours chart of the BTC/USD pair.
Looking at the chart, bitcoin price remains well bid on the downside and it is likely to clear the $5,650 resistance. The next stop for the bulls could be $5,850 or $5,980. On the downside, a break below the $5,400 support may push the price towards $5,260 and the 55 simple moving average (4-hours).
Technical indicators
4 hour MACD – The MACD is gaining momentum in the bullish zone.
4 hour RSI (Relative Strength Index) – The RSI is currently well above the 60 and 70 levels.
Key Support Levels – $5,500 and $5,400.
Key Resistance Levels – $5,650, $5,850 and $5,980.
