Bitcoin price pumped higher and broke the $4,000 and $4,120 resistance levels against the US Dollar. BTC/USD is placed nicely in an uptrend and it could trade past $4,350.
- Bitcoin price jumped higher and traded close to the $4,200 level.
- BTC is likely to find strong support near the $3,980-4,000 support area on the 2-hours chart.
- The price could dip a few points, but later it could break $4,200 and $4,350.
Bitcoin Price Analysis
Recently, bitcoin price dipped from the $4,120 swing high towards the $3,800 level against the US Dollar. BTC/USD found a strong buying interest near the $3,800 region and later bounced back.
The 2-hour chart indicates that the price traded above the $4,000 and $4,120 resistance levels. It traded to a new monthly high at $4,194 and it currently placed well above the 100 simple moving average (2-hours).
At the outset, the price is correcting lower and it already broke the 23.6% Fib retracement level of the last leg from the $3,864 low to $4,194 high. There could be more declines in the short term, but the price is likely to find strong support near the previous resistance at $4,000 and $3,980.
There is also a solid bullish trend line formed with support near $3,970 on the same chart. Besides, the 50% Fib retracement level of the last leg from the $3,864 low to $4,194 high is placed near the $4,030 level.
Therefore, if the price corrects lower from the current levels, it is likely to find support near the $4,050, $4,030, $4,000, and $3,980 levels. Below this last, the price could test the $3,800 swing low or the $3,765 pivot level.
On the upside, initial resistance is near the $4,200 level, above which the price could rally above the $4,350 resistance. The next key stop for buyers could be $4,500-4,550 where sellers may emerge.
Overall, bitcoin price is trading in a solid uptrend and BTC could continue to move higher as long as it is above the $3,980 support level.
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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]