Bitcoin price traded above the crucial $3,880 resistance against the US Dollar. BTC/USD could dip a few points, but the same resistance near $3,880 might now act as a buy zone.
- Bitcoin price gained traction and broke a major resistance near $3,880.
- BTC is following a significant bullish trend line with support at $3,810 on the 2-hours chart.
- The price may dip a few points, but it is likely to find support near $3,880 and $3,810.
Bitcoin Price Analysis
In the last few analysis, we discussed above the importance of the $3,880 resistance for bitcoin price against the US Dollar. Recently, the BTC/USD pair formed solid support near $3,740 and started an upward move above the $3,800 pivot level.
The 2-hours chart indicates that the price gained momentum and buyers were able to successfully push the price above the $3,880 barrier. The price even traded above the $4,000 level and settled above the 100 simple moving average (2-hours).
A new 2019 high was formed at $4,027 and later the price started a short-term downside correction. It declined below $4,000 and $3,980. There was also a break below the 23.6% Fib retracement level of the last wave from the $3,739 low to $4,027 high.
However, there are many supports on the downside near the $3,900 and $3,880 levels. The main support is near $3,880, which was a solid resistance earlier. It also coincides with the 50% Fib retracement level of the last wave from the $3,739 low to $4,027 high.
More importantly, there is a significant bullish trend line in place with support at $3,810 on the same chart. Therefore, if the price corrects lower below $3,950 and $3,900, it is likely to find a strong buying interest near the $3,880 and $3,810 support levels.
On the upside, the recent high near $4,025 is a short-term resistance, above which bitcoin price could spike towards the $4,100 and $4,180 levels. The next key resistance for BTC buyers above $4,180 is near the $4,250 level.
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A blockchain enthusiast, my expertise extends to marketing and advertising through which I was able to help a few notable startups in generating initial traction. Follow me on Twitter at @abhinavagrwl94 and reach out to me at abhinav[at]coingape.com