Bitcoin price analysis shows that the leading cryptocurrency is again going to test the US$4,000 level in the near future as it broke the US$3,900 resistance recently.
Bitcoin Price – What can be Expected?
Hourly chart of Bitcoin price against the US Dollar (Kraken data feed) shows a major ascending channel that has formed with support at US$3,850. Bitcoin technical analysis indicates that the BTC/USD price will first decline before trying to move above the strong resistance at US$4,000. Above US$3,800, the BTC-USD pair is showing positive signs. The leading cryptocurrency in terms of market capitalization has got enough support on the downside for gains to be made above the US$4,000 level.
Bitcoin Price Analysis – Technical Analysis
Yesterday, the suggestion was to “Buy BTC on Dips Near US$3,700”. The Bitcoin price against the US Dollar maintained a nice uptrend and went on to break the strong resistance levels at US$3,820 and US$3,900. It went on to reach a high at US$3,923.
Currently, the BTC/USD price is witnessing a downward correction. The BTC price couldn’t hold on to the support at US$3,900. However, it’s still holding strong the 100 hourly SMA.
The 23.6% Fibonacci retracement level of the recent price movement from the low at US$3,646 to high at US$3,923.
On the hourly chart, a major ascending channel can be seen with support at US$3,850. If this level is breached downwards then Bitcoin price may test the strong support level at US$3,780. This represents the 50% Fibonacci retracement level of the recent price movement from the low at US$3,646 to high at US$3,923.
Bitcoin price analysis indicates that buyers are expected to return near the strong support levels around US$3,850 or US$3,780. In case, the BTC price breaks above the resistances at US$3,900 and US$3,930 then it may test the psychologically strong level of US$4,000.
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