Bitcoin (BTC) Price Watch: Important Reversal Signs Emerge
- Bitcoin price made a few swing moves above the $3,800 and $3,830 supports against the US Dollar.
- The price managed to settle above the $3,850 level and the 100 hourly simple moving average.
- This week’s major bearish trend line with resistance at $3,845 was breached on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair tested the $3,870 level and it is currently consolidating, with positive signs.
Bitcoin price climbed above key resistance levels against the US Dollar. BTC is trading with a bullish angle and it could rise above $3,900 and $3,940 in the coming sessions.
Bitcoin Price Analysis
The past three sessions were very volatile, with swing moves in bitcoin price above $3,800 against the US Dollar. The BTC/USD pair formed a large candle, taking out both short and long positions below the $3,900 resistance. The last swing low was formed at $3,832 before the price climbed higher. Buyers managed to push the price above the $3,850 resistance and the 100 hourly simple moving average.
More importantly, this week’s major bearish trend line with resistance at $3,845 was breached on the hourly chart of the BTC/USD pair. The pair failed to gain momentum after the break, but it settled above the trend line and $3,850, which is a positive sign. The price traded as high as $3,872 and it is currently correcting lower. It broke the $3,860 support and the 23.6% Fib retracement level of the recent wave from the $3,832 low to $3,872 high. However, there are many supports on the downside near $3,850 and the 100 hourly SMA.
The 50% Fib retracement level of the recent wave from the $3,832 low to $3,872 high is also near $3,850. Besides, there is a connecting bullish trend line formed near $3,845 on the same chart. Therefore, there are chances of bullish moves as long as the price is above $3,845. On the upside, the price could break the $3,875 level and test $3,900. If buyers clear the $3,900 resistance, the price may rise towards the $4,000 barrier.
Looking at the chart, bitcoin price is trading in a positive zone above $3,850. The current technical structure suggests more upsides above $3,875 and $3,900 in the coming sessions. On the other hand, a downside break below $3,850 and $3,840 may negate the current bullish bias. The next key supports are near $3,825 and $3,800.
Hourly MACD – The MACD is moving nicely in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level, with a bullish angle.
Major Support Levels – $3,840 followed by $3,825.
Major Resistance Levels – $3,875, $3,880 and $3,900.
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