Bitcoin price traded to a new 2019 high close to $5,500 and later started a downside correction. BTC price fell below the $5,000 level, but bounced back above $5,150.
- There was an upside extension in bitcoin price to a new 2019 high at $5,488.
- BTC corrected lower sharply and broke a bullish trend line with support at $5,255 on the 30-minute chart.
- The price traded as low as $4,950 and later bounced back above $5,000 and $5,150.
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Bitcoin Price Analysis (BTC to USD)
In the past few hours, there was a decent upward move in bitcoin above the $5,400 level. BTC even traded to a new 2019 high at $5,488 before buyers lost control. As a result, there was a sharp decline below the $5,400 and $5,265 support levels.
Click to Enlarge Chart
Looking at the 30-minute chart of BTC/USD, the pair started a sharp correction from the $5,488 high and even broke the $5,350 support area. There was a close below the $5,265 pivot level and the 25 simple moving average (30-minute).
During the decline, there was a break below the key $5,135 support and a bullish trend line with support at $5,255 on the same chart. The price traded as low as $4,950 and later bounced back above the $5,135 level and the 23.6% Fib retracement level of the recent downside from the $5,488 high to $4,950 low.
The price even traded above the $5,200 level, but the 50% Fib retracement level of the recent downside from the $5,488 high to $4,950 low acted as a strong resistance recently.
To the topside, there are many resistances near the $5,265 level and the 25 simple moving average (30-minute). Besides, the broken trend line and the 61.8% Fib retracement level of the recent downside from the $5,488 high to $4,950 low are also crucial hurdles for buyers.
Therefore, it won’t be easy for bitcoin buyers to push the price back above $5,265 and the 25 SMA. If they succeed, the price might climb towards the $5,400 resistance level.
Conversely, if bitcoin price fails to rebound above $5,265, there could be a fresh decline in BTC and altcoins like Ethereum, ripple, litecoin, bitcoin cash, cardano, BNB, XLM and other major altcoins. BTC could even extend the downside correction and revisit the $5,000 or $4,950 support level in the near term. Once the current correction is complete, the price is likely to regain the $5,265 and $5,300 levels.
The market data is provided by TradingView, Bitfinex.