Bitcoin price recently tested the $3,950-4,000 resistance area against the US Dollar.There is a key breakout pattern in place with resistance at $3,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).The price is likely to break the $3,800 and $3,900 resistance levels to trade further higher.
Bitcoin price is likely preparing for an upside break above $3,800 against the US Dollar. BTC may climb sharply higher once there is a clear break above $3,800 and $3,900.
Bitcoin Price Analysis
After testing the $3,650 support, Bitcoin price bounced back above $3,700 against the US Dollar. The BTC/USD pair broke the $3,800 resistance level and the 100 hourly simple moving average. There was even a spiked above $3,900, but the price struggled to gain momentum. There was no clear break above the $4,000 resistance and later the price declined below $3,800. The price is currently recovering and it is placed above the $3,700 level and the 50% Fib retracement level of the last wave from the $3,645 low to $3,946 high.
However, the $3,800 resistance is acting as a barrier for buyers. Besides, the 61.8% Fib retracement level of the last wave from the $3,645 low to $3,946 high is also preventing gains. At the outset, there is a key breakout pattern in place with resistance at $3,800 on the hourly chart of the BTC/USD pair. To trade higher, the price must break the $3,800 and $3,900 resistance levels. Finally, a break above $4,000 may open the doors for a sharp upward move.
Looking at the chart, Bitcoin price seems to be bracing the next break either above $3,800 or below $3,700. There are high chances of an upside break above $3,800-3,900 as long as the price is above $3,700 and 100 SMA.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is about to move into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is just below the 50 level.
Major Support Level – $3,700
Major Resistance Level – $3,900