Bitcoin price gained bullish momentum this week and broke the $3,850 resistance. BTC/USD buyers are in control and it seems like there could be steady gains above the $4,000 resistance.
- BTC price surged higher and broke the $3,780 and $3,850 resistance levels.
- There is a short term contracting triangle formed with support at $3,960 on the 30-minute chart.
- The price could correct slightly, but it is likely to extend gains above the $4,000 resistance.
Bitcoin Price Analysis (BTC/USD)
In the past two days, there was a solid rebound in bitcoin, Ethereum, XRP, EOS, BNB, and other altcoins. BTC formed a strong support near $3,700 and later climbed above the $3,780 and $3,850 resistance levels.
Click to Enlarge Chart
Looking at the 30-minute chart of BTC/USD, the pair even broke the $3,900 resistance level and settled above the 25 simple moving average (30-minute). The technical structure turned positive as the price settled above the $3,850 and $3,900 resistance levels.
A new weekly high was formed near the $3,998 level before the price crafted a couple of swing highs such as $3,968 and $3,986. At the outset, there is a short term contracting triangle formed with support at $3,960 on the same chart.
On the downside, there is a strong support formed near $3,960 and the 23.6% Fib retracement level of the recent wave from the $3,813 low to $3,998 high. Besides, the triangle support at $3,960 coincides with the 25 simple moving average (30-minute).
If there is a downside break below the triangle support, the price could test the key $3,900 support area. Any further declines may increase selling pressure and the price could test the $3,850 support.
On the upside, an initial resistance is near the $4,000 level, above which the price is likely to gain momentum above the $4,060 level. The next key resistance is at $4,180 and $4,200.
To sum up, bitcoin price is positioned in an uptrend above the $3,960 and $3,900 support levels. In the short term, there could be a few swing moves, but as long as the price is above $3,900, BTC is likely to grind towards $4,180 or $4,200.
The market data is provided by TradingView, Bitfinex.