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 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.
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.