Bitcoin price tested the $4,000 support recently and recovered later. BTC/USD is slowly moving higher and it could soon break the $4,200 and $4,300 resistances.
- BTC price is trading nicely above the $4,050 support area, with a bullish angle.
- A declining channel is in place with resistance at $4,120 on the 30-minute chart.
- The price is likely to clear the $4,200 and $4,300 resistance levels in the near term.
Bitcoin Price Analysis
Recently, there was a downside correction from the $4,215 swing high in bitcoin price. However, BTC/USD found support near the $4,050 level and later recovered. Similarly, altcoins like Ethereum, ripple and EOS are trading above key supports and they may extend gains.
Click to Enlarge Chart
Looking at the 30-minute chart of BTC/USD, the pair traded towards the $4,000 support recently and formed a low at $4,010. Later, the price recovered nicely and settled above the $4,050 support area.
The price traded above the 61.8% Fib retracement level of the recent decline from the $4,168 high to $4,010 low. Buyers were successful in pushing the price above the $4,080 resistance and the 25 simple moving average (30-minute).
At the outset, the price is trading near the $4,110 level. On the upside, there are many hurdles near the $4,120 and $4,140 levels. The 76.4% Fib retracement level of the recent decline from the $4,168 high to $4,010 low is also near the $4,131 level.
More importantly, there is a declining channel in place with resistance at $4,120 on the same chart. If there is an upside break above the channel and $4,140, the price may accelerate towards the $4,180 and $4,200 resistance levels.
On the other hand, if there is a downside correction, the $4,080 level and the 25 simple moving average (30-minute) are likely to act as supports. Below $4,080, the price may perhaps accelerate towards the $4,050 support area.
Overall, bitcoin price is trading with a bullish tone above the $4,050 support. Therefore, there are high chances of an upside break above $4,200 in BTC/USD in the near term.
The market data is provided by TradingView, Bitfinex.