- Bitcoin price gained traction in the past few days and traded to new a new monthly high at $4,132 against the US Dollar.
- The price corrected lower recently, but it found support near the $4,050 and $4,040 levels.
- There is a major ascending channel in place with support at $4,070 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair might decline towards the $4,040 support once again before climbing higher in the near term.
Bitcoin price is trading in a strong uptrend above $4,000 against the US Dollar. BTC/USD must stay above the $4,040 support to climb further higher above $4,150 and $4,200.
Bitcoin Price Weekly Analysis (BTC)
This past week, there was a strong upside break above the $4,000 resistance in bitcoin price against the US Dollar. Later, the BTC/USD pair formed a support base above the $3,980 and $4,000 levels for the next wave. Finally, there was a sharp upward move above the $4,040 pivot level. The price gained traction and broke the $4,100 resistance area. A new monthly high was formed at $4,132 before the price started a downside correction.
The price traded below the $4,080 level, but it stayed well above the 100 simple moving average (4-hours). There was a break below the 50% Fib retracement level of the last wave from the $3.995 swing low to $4,132 high. However, the $4,040 and $4,050 support levels acted as a strong buy zone. Besides, the 61.8% Fib retracement level of the last wave from the $3.995 swing low to $4,132 high acted as a solid buy zone. There is also a major ascending channel in place with support at $4,070 on the 4-hours chart of the BTC/USD pair.
If there is a downside break below the channel support, the price may revisit the $4,040 support area. As long as the price is above the $4,040 support area, there are chances of a fresh upward move above $4,100 and $4,150. The next key resistance above $4,150 is near the $4,200. The main aim for bulls in the coming days could be $4,400.
Looking at the chart, BTC price seems to be following a decent uptrend above the $4,000 and $4,040 support levels. In the short term, there could be range moves above $4,040 before a fresh increase. A convincing break above the $4,132 high is likely to set the pace for more gains towards the $4,200 and $4,400 levels.
Technical indicators
4 hours MACD – The MACD for BTC/USD is slowly moving into the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is placed well above the 60 level.
Major Support Level – $4,040
Major Resistance Level – $4,130