Bitcoin price traded higher and broke the $3,350 and $3,585 resistance levels against the US Dollar. BTC/USD is likely to climb further towards $3,988 where sellers may emerge.
- Bitcoin price climbed higher sharply and broke the $3,585 resistance zone.
- BTC is following a steep bullish trend line with support at $3,700 on the 2-hours chart.
- The price may continue to rise towards the $3,988 resistance area in the near term.
Bitcoin Price Analysis
In the last analysis, we discussed that bitcoin price could be eyeing a short-term reversal above the $3,350 resistance against the US Dollar. BTC/USD did move higher and broke the $3,350 and the $3,585 barrier to move into a bullish zone.
The 2-hours chart indicates that the price started a solid bullish move from the $3,154 low and climbed above the $3,350 pivot area. There was a break above a key bearish trend line and the 76.4% Fib retracement level of the last drop from the $3,669 high to $3,154 low.
More importantly, the price settled above the $3,585 resistance and the 100 simple moving average (2-hours). It opened the doors for more gains and the price climbed above the $3,669 high.
At the outset, the price is trading near the 1.236 Fib extension level of the last drop from the $3,669 high to $3,154 low. It seems like the price may continue to move higher towards the $3,988 level, which is the 1.618 Fib extension level of the same drop.
If there is a downside correction, the price might find bids near a steep bullish trend line with support at $3,700 on the same chart. A break below the trend line support may kick start an extended downside correction towards the $3,585 level, which was a resistance earlier and now it could hold losses.
Overall, bitcoin price jumped into a bullish zone above $3,700 with a lot of strength. However, BTC must surpass the $3,988 and $4,000 resistance levels to extend gains and remain in a nice uptrend in the coming days.
Passionate about technology and science. Pursuing Doctorate in the field of Data Mining, Professor by profession and loves writing interesting articles about Cryptocurrencies, bitcoin, Ethereum, ripple, Forex and commodities. Reach out to her [email protected]