- Bitcoin price gained traction and broke the $3,850 and $3,900 resistance levels against the US Dollar.
- The price rallied recently and even climbed above $4,000 before correcting lower.
- There is a major bullish trend line formed with support at $3,940 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair remains supported on dips and it could bounce back above $4,000 and $4,050.
Bitcoin price rallied recently above the $4,000 level against the US Dollar. BTC corrected lower, but it remains supported and it may continue to grind higher in the near term.
Bitcoin Price Analysis
In the past few days, we saw a solid selling interest below $3,900 for bitcoin price against the US Dollar. The BTC/USD pair struggled to break the $3,900 resistance on many occasions. There were even a few swing moves below the $3,850 level. However, the price remained well bid and later it managed to climb above the $3,850 and $3,900 resistance levels. The price even cleared the $4,000 resistance level and settled well above the 100 hourly simple moving average.
A new weekly high was formed at $4,042 and later the price corrected lower. It traded below the $4,000 support and the 23.6% Fib retracement level of the recent wave from the $3,886 low to $4,042 high. However, there are many supports on the downside near $3,950 and $3,920. Moreover, the 50% Fib retracement level of the recent wave from the $3,886 low to $4,042 high also acted as a support. On the downside, there is a major bullish trend line formed with support at $3,940 on the hourly chart of the BTC/USD pair.
