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.