Story by: AAYUSH JINDAL
- Bitcoin price formed a double bottom pattern near $4,940 and climbed higher against the US Dollar.
- Bulls pushed the price above the key $5,150 and $5,160 resistance levels.
- Yesterday’s highlighted major bearish trend line was breached at $5,110 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is currently trading in a positive zone and it could continue to rise towards $5,350 or $5,400.
Bitcoin price rebounded sharply above $5,200 against the US Dollar. BTC is back in a decent uptrend and it seems like it could climb towards the key $5,400 resistance area.
Bitcoin Price Analysis
Yesterday, bitcoin price revisited the $4,940 support area against the US Dollar. The BTC/USD pair found a strong buying interest near $4,940 and later started a decent upward move. It seems like the price formed a double bottom pattern near $4,940, which is a positive sign. It broke the $5,100 resistance and the 100 hourly simple moving average to start a solid upward move. Besides, there was a break above the 50% Fib retracement level of the last drop from the $5,186 high to $4,943 low.
More importantly, yesterday’s highlighted major bearish trend line was breached at $5,110 on the hourly chart of the BTC/USD pair. Finally, there was a break above the key $5,150-5,160 resistance area (the previous support). It opened the doors for more gains and the price traded above $5,200 and $5,250. A new weekly high was formed at $5,275 and the price is currently consolidating gains. An initial support is near $5,200 and the 23.6% Fib retracement level of the recent wave from the $4,943 low to $5,275 high.
However, the main support is near the $5,150-5,160 area (the previous resistance). Below $5,150, the price could test the $5,100 support area and the 100 hourly simple moving average. The 50% Fib retracement level of the recent wave from the $4,943 low to $5,275 high is also near the $5,109 level. Therefore, dips from the current levels remain well supported near $5,160 and $5,100.
Looking at the chart, bitcoin price clearly jumped back in a positive zone above $5,160. In the short term, there could be a downside correction, but the bulls are likely to defend $5,160 or $5,100. On the upside, an initial resistance is near the $5,275 level, above which the price might test $5,300. Any further gains is likely to set the pace for a push towards the $5,400 level.
Hourly MACD – The MACD is placed nicely in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD jumped above the 60 level and it is currently correcting lower.
Major Support Levels – $5,160 followed by $5,100.
Major Resistance Levels – $5,275, $5,300 and $5,400.