Bitcoin price is holding the key support near the $3,580 zone against the US Dollar.Yesterday’s contracting triangle is in place with resistance near $3,610 on the hourly chart of the BTC/USD pair (data feed from Kraken).The price is likely preparing for the next bullish break above $3,610, $3,620 and $3,650.
Bitcoin price is setting up for the next crucial break against the US Dollar. BTC could gain bullish momentum if it clears the $3,620 and $3,650 resistance levels in the near term.
Bitcoin Price Analysis
Recently, we saw an intermediate high at $3,658 in Bitcoin price against the US Dollar. Later, the BTC/USD pair corrected lower and traded below the $3,600 and $3,580 support levels. However, the $3,540 and $3,550 support levels acted as a strong barrier for sellers. A low was formed at $3,539 and later the price bounced back above $3,580. The price broke the $3,600 resistance and the 100 hourly simple moving average. Besides, there was a break above the 50% Fib retracement level of the last drop from the $3,658 high to $3,539 low.
However, the price faced a strong resistance near the $3,610-3,620 zone. More importantly, yesterday’s contracting triangle is in place with resistance near $3,610 on the hourly chart of the BTC/USD pair. The pair seems to be struggling near the 61.8% Fib retracement level of the last drop from the $3,658 high to $3,539 low. Therefore, a successful break above $3,610 and follow through above $3,620 could set the pace for more gains. The main resistance is at $3,650, above which the price might revisit $3,720. On the other hand, a downside break below $3,580 could encourage sellers to push the price further lower.
Looking at the chart, Bitcoin price seems to be setting up for the next key break either above $3,620 or below $3,580. The price action is positive, but buyers need to gain strength above $3,620 for a proper follow through.
Hourly MACD – The MACD is currently flat in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is placed above the 50 level, with a bullish angle.
Major Support Level – $3,580
Major Resistance Level – $3,620