Bitcoin Price Analysis Dec 31: BTC Facing Significant Uptrend Resistance
Bitcoin price recovered nicely from the $3,538 low against the US Dollar. BTC/USD traded above the $3,810 resistance, but it struggled near the $3,885 barrier.
Important Points:
- Bitcoin price seems to be facing a solid resistance near the $3,810 and $3,885 levels.
- BTC broke a key declining channel at $3,690, but it struggled near the $4,000 handle on the 2-hours chart.
- The price could correct lower in the short term towards the $3,650 or $3,600 support levels.
Bitcoin Price Analysis
After trading as low as $3,538, bitcoin price started a decent upward move against the US Dollar. BTC/USD broke the $3,650, $3,810 and $3,850 resistance levels, but it faced a strong resistance near the $3,885 level.
The 2-hours chart indicates that the price climbed above the $3,810 resistance and the 23.6% Fib retracement level of the last decline from the $4,195 high to $3,538 low. There was even a break above the $3,885 resistance and the 100 simple moving average (2-hours).
More importantly, the price broke a major declining channel with resistance at $3,690 on the same chart to initiate the upward move. However, it seems like the price struggled to stay above the $3,885 resistance and the 100 simple moving average (2-hours).
Besides, the 50% Fib retracement level of the last decline from the $4,195 high to $3,538 low protected an upside break. At the outset, the price is in a declining mode below $3,800 and it may continue to move down towards the $3,650 support.
If there is a break below the $3,650 support, the price could drop to the last swing low at $3,538. On the upside, there is a solid resistance formed near $3,810 and a bearish trend line on the same chart.
Therefore, a break above the trend line, $3,810 and $3,885 is needed for buyers to take charge. In the stated case, bitcoin price may continue to rise towards the $3,950 and $4,000 resistance levels. Should there be more gains, BTC could climb further to test the $4,250 resistance zone in the near future.
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