Bitcoin price rallied recently and tested the $3,800 resistance area. BTC/USD is currently correcting, but it remains well supported above $3,630 for more gains in the near term.

  • BTC price is trading nicely above the $3,645 and $3,630 support levels.
  • There is a major declining channel in place with resistance at $3,720 on the 30-minute chart.
  • Buyers are likely to gain strength above $3,720 as long as the price is above $3,630.

Bitcoin BTC Price

Bitcoin Price Analysis (BTC/USD)

This week, there was a solid upward move above the $3,600 resistance in bitcoin price. BTC even broke the $3,700 resistance and challenged the $3,800 resistance area before starting a downside correction.

Bitcoin Price Analysis BTC Chart

Click to Enlarge Chart

Looking at the 30-minute chart of BTC/USD, the pair formed a high at $3,800 and later started a substantial downside correction. Many intermediate highs were formed near $3,750, $3,720 and $3,680 before the price traded below the $3,650 support level. A low was formed at $3,631 and later the price bounced back above $3,650.

There was a break above the 23.6% Fib retracement level of the recent drop from the $3,742 high to $3,631 low. Buyers were able to push the price above the $3,660 level and the 25 simple moving average (30-minute).

However, the price struggled to break the $3,680 resistance. At the moment, the price is forming a short term breakout pattern with resistance at $3,675. If there is a break above the channel resistance, the price could test the 50% Fib retracement level of the recent drop from the $3,742 high to $3,631 low.

To the topside, there are many resistances near the $3,700 and $3,720 levels. More importantly, there is a major declining channel in place with resistance at $3,720 on the same chart. Therefore, a successful break above the $3,720 resistance will most likely spark bullish moves. In the mentioned case, the price could break the $3,800 resistance and trade towards the $4,000 handle in the coming sessions.

Alternatively, if bitcoin price declines further and breaks the $3.630 swing low, there could be an extended decline below $3,600. The next targets for BTC sellers might be $3,550 or $3,520.

The market data is provided by TradingView, Bitfinex.


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Posted by Dr. Latika Mehrotra

Ph.D in Data Mining, Blockchain enthusiast, and passionate about technology and science. Professor by profession and loves writing interesting articles about Cryptocurrencies, bitcoin, Ethereum, ripple, Forex and commodities.


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One Comment

  1. Avatar

    Always a dump….barely above 3600 now. Is BTC really worth anything anymore or just a shorting mechanism? Way too much time on the hands of short sellers.

    Reply

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