Bitcoin price is consolidating above the $3,900 support and below $4,000 resistance. BTC/USD could start a solid upward move if it clears the $3,970 and $4,000 resistances.
- BTC price declined recently and tested the $3,900 support level.
- There is a key contracting triangle in place with resistance at $3,960 on the 30-minute chart.
- The price is likely to climb higher as long as the $3,925 and $3,900 supports are intact.
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Bitcoin Price Analysis (BTC/USD)
Recently, there was a downside reaction in Bitcoin, Ethereum, Ripple XRP, EOS, BNB, XLM, and other altcoins. BTC failed to gain strength above $4,000 and declined below the $3,950 and $3,925 support before buyers emerged near the $3,900 support.
Click to Enlarge Chart
Looking at the 30-minute chart of BTC/USD, the pair traded as low as $3,895 and recently corrected above the $3,925 and $3,940 resistance levels. A swing high was formed at $3,979 and the price trimmed gains below $3,960.
It broke the $3,950 support and the 25 simple moving average (30-minute). Besides, there was a break below the 50% Fib retracement level of the recent wave from the $3,895 low to $3,979 high.
However, the decline was protected by the $3,925 support area. The 61.8% Fib retracement level of the recent wave from the $3,895 low to $3,979 high also acted as a support. At the moment, the price is trading sideways above $3,925 and it seems to be preparing for the next move.
There is also a key contracting triangle in place with resistance at $3,960 on the same chart. Should bitcoin break the triangle resistance, the price could climb towards the $4,000 and $4,020 resistance levels.
On the other hand, if there is a downside break, the price could retest the $3,925 or $3,900 support before starting a fresh upward move. Overall, BTC is trading with a positive bias and it could break the $3,960 and $4,000 resistance levels. Having said that, a break below the $3,895 low may negate the bullish view and the price could drop towards $3,800 or $3,760.
The market data is provided by TradingView, Bitfinex.