Bitcoin (BTC) Price Watch: Weekend Rally And Possible Run To $4,200
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.
The trend line coincides with the 61.8% Fib retracement level of the recent wave from the $3,886 low to $4,042 high. Therefore, there could be a strong buying interest near the $3,940 level. On the upside, an initial resistance is near the $4,000 level. The next resistance is near the $4,040-4,050 zone, above which the price is likely to accelerate higher. The next main resistance is at $4,120, where sellers may emerge.
Looking at the chart, bitcoin price clearly gained a lot of traction after it broke the $3,900 resistance. It is currently correcting lower, but dips remain well supported near $3,940. Therefore, there are high chances of a fresh rally in the coming sessions above the $4,000 and $4,040 resistance levels.
Hourly MACD The MACD is currently moving slowly in the bearish zone.
Hourly RSI (Relative Strength Index) The RSI for BTC/USD corrected lower from the overbought levels and tested the 60 level.
Major Support Levels $3,950 followed by $3,940.
Major Resistance Levels $4,000, $4,040 and $4,120.
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