Bitcoin Price Watch: BTC Could Rally Above $4,000 If It Breaks $3,900

Story by: AAYUSH JINDAL

  • Bitcoin price declined sharply below the $3,750 support and tested $3,650 against the US Dollar.
  • The price bounced back from the $3,653 low and broke the key $3,750 resistance.
  • There was a break above a major bearish trend line with resistance at $3,785 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to gain bullish momentum above the $3,860 and $3,900 resistance levels.

Bitcoin price tumbled below $3,700 and later recovered sharply against the US Dollar. BTC is pointing bullish signals and it could continue to rise towards $4,000 in the near term.

Bitcoin Price Analysis

Yesterday, we discussed the chances of more losses if bitcoin price breaks the $3,750 support against the US Dollar. The BTC/USD pair did break the $3,750 support and declined below the $3,700 level. There was a sharp downward move and the price tested the $3,650 support. A new weekly low was formed at $3,653 and later the price bounced back. The recent recovery was strong as the price climbed above the $3,750 and $3,760 resistance levels.

There was a break above the 61.8% Fib retracement level of the recent decline from the $3,827 high to $3,653 low. More importantly, there was a break above a major bearish trend line with resistance at $3,785 on the hourly chart of the BTC/USD pair. It has opened the doors for more gains above the $3,800 level. BTC is currently trading above the 76.4% Fib retracement level of the recent decline from the $3,827 high to $3,653 low. Therefore, there are chances of more gains above the last swing high at $3,827. An immediate resistance is at $3,830 and the 100 hourly simple moving average.

If there is a break above the 100 hourly SMA, the price could climb towards the $3,860 resistance. A successful close above $3,860 and $3,900 will most likely set the tone for a rally towards the $4,000 resistance. In the mentioned case, the price may even climb above $4,050. On the other hand, an initial support is at $3,760, below which the price could test $3,700.

Bitcoin Price Analysis BTC Chart

Original story: https://www.newsbtc.com/2019/02/28/bitcoin-price-watch-btc-could-rally-above-4000-if-it-breaks-3900/

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