Bitcoin price corrected lower recently and traded below the $3,800 support against the US Dollar.There was a break above a short term declining channel with resistance at $3,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).The price is likely basing for a fresh upward move above the $3,900 and $4,000 resistance levels.
Bitcoin price found support near the $3,680 level against the US Dollar. BTC might soon start a fresh bullish wave above the $4,000 resistance.
Bitcoin Price Analysis
Yesterday, we saw a major downside correction in Bitcoin price below the $4,000 support against the US Dollar. The BTC/USD pair even declined below the $3,800 support before buyers appeared near the $3,680 level. A low was formed at $3,684 and later the price started a fresh upward move. The price moved above the $3,750 resistance to start a fresh upward move.
It even broke the 23.6% Fib retracement level of the last decline from the $4,249 high to $3,684 low. Moreover, there was a break above a short term declining channel with resistance at $3,800 on the hourly chart of the BTC/USD pair. The pair is now trading nicely above the $3,800 level, with an immediate resistance near the 100 hourly simple moving average and $3,950. The next resistance is $4,000 and the 50% Fib retracement level of the last decline from the $4,249 high to $3,684 low. Therefore, if the price corrects further higher, it could find resistance near the $3,950 and $4,000 resistances.
Looking at the chart, Bitcoin price seems to be forming a support base near the $3,700 level for a fresh upward move. If it fails to stay above $3,700 support, there could be additional losses towards the $3,500 level in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently just above the 50 level.
Major Support Level – $3,700
Major Resistance Level – $4,000