Bitcoin price traded higher recently and broke the $3,440 resistance against the US Dollar. BTC/USD moved into a short term bullish zone and it could climb towards $3,740 or $3,800.
- Bitcoin price traded higher and broke the $3,440 and $3,520 resistance levels.
- BTC/USD broke a major bearish trend line with resistance at $3,560 on the 2-hours chart.
- BTC price is now placed nicely above the $3,440 support level, with a bullish angle.
Bitcoin Technical Analysis
After forming a new multi-month low at $3,220, bitcoin price started a decent upward move against the US Dollar. BTC/USD climbed above the $3,320 and $3,380 resistance levels to start an upside correction.
The 2-hours chart indicates that the price gained pace above the $3,400 barrier and broke the 50% Fib retracement level of the last decline from the $3,908 high to $3,220 low. The price even climbed above the $3,550 level to move into a short term bullish zone.
More importantly, the price broke a major bearish trend line with resistance at $3,560 on the same chart. However, the upward move was protected by sellers near the $3,645 level (the previous support zone).
The stated $3,645 level is also the 61.8% Fib retracement level of the last decline from the $3,908 high to $3,220 low. The price retreated from highs and it later corrected below the $3,600 and $3,560 levels.
However, the price is finding a solid buying interest near the $3,440 level and the broken trend line. Therefore, as long as the price is trading above the $3,440 level, there are high chances of a fresh upward move in the near term.
On the upside, the price must break the $3,650 and $3,680 resistance levels for more gains. The next target for buyers could be the 100 simple moving average (2-hours) or the $3,800 level.
Overall, bitcoin price is currently trading with a positive angle above the $3,440 support and it could rise towards $3,750 or $3,800. On the other hand, a downside break below $3,440 may push BTC back in a bearish zone.