HomeBitcoin NewsBitcoin Price Analysis: Dips In BTC Remain Attractive To Buyers

Bitcoin Price Analysis: Dips In BTC Remain Attractive To Buyers

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  • Bitcoin price rallied recently after it broke the $3,600 resistance zone against the US Dollar.
  • There was a break above a major bullish flag pattern with resistance at $3,600 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair surged above the $3,800 resistance and formed a new monthly high at $3,968.
  • A downside correction is underway, but dips remain supported near the $3,700 support in the near term.

Bitcoin price surged higher above $3,700 and $3,800 against the US Dollar. BTC traded above $3,950 and later started a downside correction towards $3,760 and $3,710 supports.

Bitcoin Price Analysis

This past week, there was a strong rise towards the $3,700 level in bitcoin price against the US Dollar. Later, the BTC/USD pair started consolidating gains with corrective moves below $3,700. It tested the $3,550 support area, where it found renewed buying interest. As a result, there was a fresh rally and the price climbed above the $3,600 and $3,700 resistance levels. More importantly, there was a break above a major bullish flag pattern with resistance at $3,600 on the 4-hours chart of the BTC/USD pair.

The pair settled above the $3,800 level and the 55 simple moving average (4-hours). Buyers pushed the price above the $3,900 and $3,950 levels. However, there was no test of the $4,000 resistance and later the price corrected lower. It declined below $3,900 and tested the 23.6% Fib retracement level of the recent wave from the $3,560 low to $3,968 high. At the moment, the price is trading near the $3,880 support and a connecting bullish trend line on the same chart.

If there is a downside break below the trend line, the price might decline towards the $3,710 support area. An intermediate support is near the $3,765 level. It represents the 50% Fib retracement level of the recent wave from the $3,560 low to $3,968 high. At the outset, it seems like the price might break the $3,880 and $3,850 support levels to start a substantial downside correction.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price clearly gained traction above the $3,800 level. However, it failed to surpass the $3,950 and $4,000 resistance levels. Therefore, there is a risk of a downside correction towards the $3,710 support before a fresh upward move. On the upside, the main resistances are seen near $3,950, $4,000 and $4,060.

Technical indicators

4 hour MACD – The MACD is currently reducing its bullish slope, with a few bearish signs.

4 hour RSI (Relative Strength Index) – The RSI is moving lower from the overbought levels and it could test the 60 level.

Key Support Levels – $3,765 and 3,710.

Key Resistance Levels – $3,950 and 4,000.

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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