- The price of Bitcoin remained above the support of $ 3,850 and recovered above $ 3,940 against the US dollar.
- The price rose and was set above the resistance levels of $ 3,900 and $ 3,940.
- The crucial bearish trend line followed this week was cleared with resistance at $ 3,945 on the hourly chart of the BTC / USD pair (Kraken data source).
- The pair is now back in a positive zone and could extend the gains above the $ 3,980 and $ 4,000 resistance.
The price of Bitcoin took a sharp turn from the new weekly lows against the US dollar. BTC is back above the pivotal level of $ 3,940 and could accelerate earnings above the $ 4,000 barrier in the short term.
Bitcoin price analysis
Yesterday, we saw a prolonged decrease in the price of Bitcoin below the support of $ 3,900 against the US dollar. The BTC / USD pair was negotiated at a new weekly minimum of $ 3,850. Later, the pair formed a decent support base near the $ 3,880 level. As a result, there was a strong rebound and the price rose above the resistance level of $ 3,900. More importantly, the price eliminated key resistances close to $ 3,920 and $ 3,940 (previous supports).
In addition, the bulls cleared the crucial bearish trend line followed this week with a resistance of $ 3,945 on the hourly chart of the BTC / USD pair. The pair was set above the resistance of $ 3,940 and the simple moving average of 100 hours. It even shot above the resistance of $ 3,980 and formed a new intraday high at $ 3,988. The price is currently consolidating below $ 3,988 and it seems that there could be more gains. On the downside, initial support is close to $ 3,955 and the Fibonacci retracement level of 23.6% of the recent wave from the minimum of $ 3,856 to $ 3,988.
However, the main support is close to the levels of $ 3,940 and $ 3,920. The Fibonacci retracement level of 50% of the recent wave from the minimum of $ 3,856 to the maximum of $ 3,988 is also close to the level of $ 3,920. On the positive side, the price is likely to accelerate above the resistance of $ 4,000 in the short term. The next stop for buyers could be about $ 4,020 or $ 4,040.
Looking at the Bitcoin price is pumped very well above the pivot level of $ 3, .940 and moves to a positive zone. The current price action is positive and suggests more earnings above $ 4,000 and $ 4,020. There are even chances of a new maximum above the resistance of $ 4,040. On the other hand, if there is a downward correction, it is likely that buyers will protect the support levels of $ 3,940 and $ 3,920.
Technical indicators:
MACD per hour: the MACD is gaining pace in the bullish zone.
RSI (Relative strength index) per hour: the RSI for BTC / USD increased considerably and is currently in the overbought area.
Main support levels: $ 3,940 followed by $ 3,920.
Main resistance levels: $ 4,000, $ 4,020 and $ 4,040.
