- Bitcoin price climbed further above $5,300 before topping near the $5,330 level against the US Dollar.
- The price corrected lower below $5,300 and $5,255 support levels.
- There was a break below yesterday’s discussed ascending channel with support at $5,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is still trading nicely above the key $5,180 and $5,160 support levels.
Bitcoin price corrected lower towards key supports against the US Dollar. BTC is likely to bounce back above $5,300 as long as it is trading above the $5,160 support area.
Bitcoin Price Analysis
Yesterday, we saw a steady rise above $5,260 and $5,280 in bitcoin price against the US Dollar. The BTC/USD pair even broke the $5,300 resistance and traded close to the $5,330 level. A new weekly high was formed at $5,327 before the price started a downside correction. There was a break below the $5,260 support, and the 23.6% Fib retracement level of the recent wave from the $5,018 low to $5,327 high.
Besides, there was a break below yesterday’s discussed ascending channel with support at $5,250 on the hourly chart of the BTC/USD pair. The pair traded close the $5,200 support before buyers appeared. On the downside, there is a strong support forming near $5,180 and the 100 hourly simple moving average. The 50% Fib retracement level of the recent wave from the $5,018 low to $5,327 high is also near the $5,170 level to act as a support. More importantly, there is a crucial bullish trend line in place with support at $5,170 on the same chart.
Therefore, bitcoin remains well supported above the $5,170 and $5,180 levels. Only a close below the $5,160 level and 100 hourly simple moving average could start a major decline in the near term. The next support is at $5,090, which is close to the 76.4% Fib retracement level of the same wave. On the upside, the broken channel area near $5,260 could act as a resistance. Above $5,260, the price is likely to surpass the $5,300 and $5,330 levels.
Looking at the chart, bitcoin price is clearly well supported above $5,160 and the 100 hourly simple moving average. Therefore, it is likely to bounce back above $5,300 in the next few hours. Conversely, a convincing close below the $5,160 support level may perhaps trigger an extended drop to $5,090 or $5,020.
Technical indicators:
Hourly MACD – The MACD is likely to move back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD tested the 40 and it is currently moving higher towards 50.
Major Support Levels – $5,200 followed by $5,160.
Major Resistance Levels – $5,260, $5,300 and $5,330.