Bitcoin (BTC) Price Weekly Analysis: Can Buyers Keep The Rally Going?
- Bitcoin price rallied recently after it broke the key $3,900 resistance area against the US Dollar.
- The price surged higher and broke the $3,950 and $4,000 hurdles to set the pace for more gains.
- There is a major connecting bullish trend line formed with support at $3,900 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair is currently correcting lower, but it is likely to find support near $3,920 or $3,900.
Bitcoin price climbed sharply into a bullish zone above $3,900 against the US Dollar. BTC/USD is placed nicely in an uptrend and dips close to $3,920 remain supported for a fresh bullish wave.
Bitcoin Price Analysis
This past week, there were a couple of bearish reactions below the $3,850 level in bitcoin price against the US Dollar. The BTC/USD pair spiked towards the $3,800 level on two occasions, but buyers protected additional losses. Finally, the price started a nice bullish wave and broke the $3,850 and $3,900 resistance levels. It opened the doors for more gains above $3,900 and the price settled above the 100 simple moving average (4-hours). During the upside, the price broke a key bearish trend line with resistance at $3,890 to move into a bullish zone.
Buyers gained control and the price rallied above the $4,000 level. It traded as high as $4,041 before sellers appeared. Later, a downside correction initiated below the $4,000 support. Sellers pushed the price below the 23.6% Fib retracement level of the recent wave from the $3,847 low to $4,041 high. The price declined sharply and tested the previous resistance (now support) at $3,950. Besides, the 50% Fib retracement level of the recent wave from the $3,847 low to $4,041 high is currently acting as a support.
More importantly, there is a major connecting bullish trend line formed with support at $3,900 on the 4-hours chart of the BTC/USD pair. Therefore, if the price continues to move down, it could find a strong support above the $3,900 level. On the upside, an initial resistance is at $4,000, above which the price is likely to retest the $4,040 swing high.
Looking at the chart, BTC price nicely moved into a bullish zone above $3,900. In the short term, there could be a few swing moves towards $3,920 or $3,900, but the price is likely to find a strong buying interest. Sooner or later, there are high chances of a fresh upward move above the $4,000 and $4,040 levels.
4 hours MACD – The MACD for BTC/USD is slowly reducing its bullish slope.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD corrected lower and tested the 60 level.
Major Support Level – $3,900
Major Resistance Level – $4,040
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