Bitcoin price corrected lower after trading as high as $4,094 against the US Dollar. BTC/USD remains in an uptrend and it could soon break the $4,094 high and $4,180 resistance.
- Bitcoin price is trading nicely above the $3,830 support and the 50 simple moving average (4-hours).
- BTC/USD is following a major ascending channel with support at $3,830 on the 4-hours chart.
- BTC price may test the $3,875 or $3,830 support before climbing above the $4,094 swing high.
Bitcoin Price Analysis
There was a decent upward move above the $3,900 level in bitcoin price. BTC/USD even traded above the $4,020-4,050 resistance area and climbed to a new 2019 high at $4,094.
The 4-hours chart of BTC/USD indicates that the price formed a high at $4,094 and later started a downside correction. It moved below the $4,050 level and the $4,020 pivot level to start a short term bearish wave.
There was also a break below the 23.6% Fib retracement level of the last upward move from the $3,734 low to $4,094 high. However, the price remains well supported above the $3,830 and $3,910 levels in the near term.
Initial support is near the $3,910 level and the 50% Fib retracement level of the last upward move from the $3,734 low to $4,094 high. Below $3,910, the price may test the $3,830 support and the 50 simple moving average (4-hours).
More importantly, there is a major ascending channel in place with support at $3,830 on the same chart. Below the channel support, there is a significant bullish trend line at $3,780.
Should there be a downside break below $3,780, the price may continue to decline towards the $3,700 and $3,600 support levels. On the upside, initial resistance is near the $4,090 level, above which the price is likely to climb to a new 2019 high. The next major resistance is at $4,180, followed by $4,220.
Overall, bitcoin is trading with a positive bias as long as the price is above the $3,830 and $3,780 support levels. BTC buyers may soon target $4,100, $4,180 or even $4,220.
Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. Tou can follow him on twitter at @aayushJS or reach out to him at aayush[at]coingape.com