Bitcoin price traded above the $4700 resistance against the US Dollar. BTC/USD is now eyeing a major upside break above $4900.
Key Talking Points
- Bitcoin price was able to move above the $4600 and $4700 resistance levels against the US Dollar.
- There is a key bullish trend line forming with support at $4750 on the hourly chart of BTC/USD.
- As long as the pair is above $4750-4700, buyers might attempt a break towards $5000.
Bitcoin Price Chart Analysis
In the last analysis, I mentioned that a break above $4620 in Bitcoin price is on the cards against the US Dollar. The price did break the $4620 level and moved above the $4700 level. The upside move was strong and the price even surpassed $4900.
A high was formed at $4919 from where a correction wave was initiated. Sellers pushed the price below the 38.2% Fibonacci retracement level of the last wave from the $4560 low to $4919 high.
However, the downside move was protected by the $4700 level (resistance turned support). Moreover, the pair was strongly bid near the 50% Fibonacci retracement level of the last wave from the $4560 low to $4919 high.
At the outset, there is a key bullish trend line forming with support at $4750 on the hourly chart of BTC/USD (data feed by Kraken). The pair is currently placed well above the $4750-4700 support and eying more gains above the $4800 level.
An initial resistance is at $4840 followed the recent high at $4919. It won’t be easy for buyers to push the price above the $4900-20 levels in the near term. If they succeed, the $5000 handle could be in sight next.
On the downside, the trend line support at $4750 holds a lot of importance. As long as the price is above the $4750-00 area, there can be an attempt to clear offers at $4900-20.
Buyers should be very careful in the short term considering the importance of the $4900-5000 resistance. Any negative news could trigger a sharp slide in BTC/USD towards $4600.
Trade safe traders and do not overtrade!