HomeBitcoin NewsBitcoin Price Analysis: BTC Rally Could Extend To $5,850 or $5,980

Bitcoin Price Analysis: BTC Rally Could Extend To $5,850 or $5,980

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  • 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.

Bitcoin Price Analysis BTC Chart

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.

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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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