Bitcoin (BTC) Bears Need To Be Cautious, Bulls Won’t Give Up Easily
- Bitcoin price corrected lower after trading above the $5,300 level against the US Dollar.
- The price declined below the $5,000 support and tested the next support near $4,750.
- There is a crucial contracting triangle in place with support near $4,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to start a fresh rise if it breaks the $5,050 and $5,100 resistance levels.
Bitcoin price found support near the $4,750 level against the US Dollar. BTC is currently trading in a range and likely setting up for the next upside break above $5,100 in the near term.
Bitcoin Price Analysis
Yesterday, we saw the start of a downside correction from the $5,359 high in bitcoin price against the US Dollar. The BTC/USD pair corrected below the $5,200 and $5,000 support levels. More importantly, there was a close below the $5,000 level, but the price stayed well above the 100 hourly simple moving average. It declined below the $4,900 level before buyers appeared near the $4,750 support area. A swing low was formed at $4,754 and recently, the price moved higher.
It broke the $4,850 level and the 23.6% Fib retracement level of the recent decline from the $5,359 high to $4,754 low. However, the price struggled to break the $5,050 resistance level. At the outset, there is a crucial contracting triangle in place with support near $4,800 on the hourly chart of the BTC/USD pair. Above the triangle, there is a strong resistance near the $5,050 level. The 50% Fib retracement level of the recent decline from the $5,359 high to $4,754 low is also at $5,056.
Therefore, a clear break above the triangle and $5,050 might open the doors for more gains. However, a convincing break above the $5,100 resistance is must for a fresh increase towards $5,350 and $5,400. On the flip side, the triangle support near $4,800 holds the key. If there is a break below $4,800, the price might test the 100 hourly simple moving average and $4,750.
Looking at the chart, bitcoin price is likely setting up for the next break either above $5,050 or towards $4,750. Above $5,050, the price is likely to surge above $5,100 and $5,200. Conversely, a downside break below $4,750 might clear the path for sellers to push the price towards the $4,620 or $4,550 support levels. The main support is near the $4,500 level, which is also a key pivot zone.
Hourly MACD – The MACD is again gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD recently moved above the 50 level.
Major Support Levels – $4,800 followed by $4,750.
Major Resistance Levels – $5,050, $5,100 and $5,200.
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