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Bitcoin Price Analysis: BTC’s Trend Overwhelmingly Bullish

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  • Bitcoin price jumped higher recently and broke the $3,475 resistance area against the US Dollar.
  • There is a crucial bullish flag pattern formed with resistance at $3,605 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The price is likely to break the $3,605 and $3,625 resistance to resume its upward move in the near term.

Bitcoin price is currently trading in an uptrend above the $3,525 support against the US Dollar. BTC could continue to rise if there is a break above the $3,625 resistance area.

Bitcoin Price Analysis

After testing the $3,350 support on a few occasions, bitcoin price started a solid upward move against the US Dollar. The BTC/USD pair rallied above the $3,400 and $3,475 resistance levels. It moved into a bullish zone and settled above the $3,500 resistance plus the 55 simple moving average (4-hours). More importantly, there was a break above a significant bearish trend line at $3,410 on the 4-hours chart of the BTC/USD pair. The pair climbed higher sharply and traded above $3,700.

A high was formed at $3,709 and later the price started a downside correction. Sellers push the price below the 23.6% Fib retracement level of the recent wave from the $3,348 low to $3,709 high. However, the $3,560 level acted as a decent support. At the outset, there is a crucial bullish flag pattern formed with resistance at $3,605 on the same chart. Therefore, a clear break above the flag resistance and $3,625 might call for more gains in the near term. In the stated bullish scenario, the price could rally above the $3,680 and $3,700 resistance levels.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price is placed nicely in an uptrend above the $3,560 and $3,500 support levels. If there is an extended downside correction, the price might find support near $3,550 or the 55 simple moving average (4-hours). The main targets for buyers could be $3,750 and $3,880.

Technical indicators

4-hour MACD – The MACD is placed nicely with positive signs in the bullish zone.

4-hour RSI (Relative Strength Index) – The RSI is moving higher towards the 65 level, with a bullish angle.

Key Support Level – $3,550

Key Resistance Level – $3,625

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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