Bitcoin price moved back in the bullish zone above $5700 against the US Dollar. BTC/USD should hold $5700-5650 to continue moving higher.
Key Talking Points
- Bitcoin price formed a base near $5400 (data feed by Kraken) against the US Dollar and started an upside move.
- There was a break above a major bearish trend line with resistance at $5740 on the 2-hour chart of BTC/USD.
- The pair might correct towards $5740-00, but most likely to gain traction for further gains.
Bitcoin Price Chart Analysis
It’s been a good week for bitcoin price as it moved above the $5500 resistance level against the US Dollar. A low as formed at $5400 from where the price started an upside move and traded above the 23.6% Fibonacci retracement level of the last decline from the $6181 high to $5400 low.
It opened the doors for more gains and buyers were able to take the price above the $5650 resistance. The best part was a break above a major bearish trend line with resistance at $5740 on the 2-hour chart of BTC/USD.
The pair is currently trading well above the 100 simple moving average (2-hour), the $5740 resistance and the 50% Fibonacci retracement level of the last drop from the $6181 high to $5400 low.
However, the upside move is capped near the $6000. The pair failed to break the $6000 handle and the 76.4% Fibonacci retracement level of the last drop from the $6181 high to $5400 low. Therefore, there are chances of a short-term consolidation above the $5700-5650 support area.
The overall trend is bullish for BTC as long as the price is above the $5650 support. An immediate support comes at the 100 simple moving average (2-hour) and the $5800 level.
On the upside, a break above the $6000 level is required for a move back towards the last swing high of $6180. The 2-hour RSI for BTC/USD is currently at 55 and showing short-term bearish signs. Buyers can opt to jump in near $5740 or $5650, but with caution.
Trade safe traders and do not overtrade!
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