Bitcoin Price Weekly Analysis: BTC Could Rebound To $4,000
- Bitcoin price formed a significant support near the $3,345 level and jumped sharply against the US Dollar.
- There was a break above a crucial bearish trend line with resistance at $3,380 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair rallied above the $3,400 and $3,500 resistance levels to move into a bullish zone.
Bitcoin price surged higher recently above the $3,550 barrier against the US Dollar. BTC/USD might continue to move higher towards the $3,800 and $4,000 resistance levels in the near term.
Bitcoin Price Analysis
This past week, bitcoin price retested the $3,345 and $3,320 support levels against the US Dollar. The BTC/USD pair formed a strong base near the $3,345 level and later started a solid upward move. Buyers pushed the price above many resistances such as $3,380, $3,400, $3,460, $3,500 and $3,600. There was even a close above the $3,500 resistance and the 100 simple moving average (4-hours). Clearly, there was a support base formed for a much needed recovery, which could extend above $3,700.
During the rise, there was a break above a crucial bearish trend line with resistance at $3,380 on the 4-hours chart of the BTC/USD pair. The pair rallied above the $3,600 and $3,700 levels. A high was formed at $3,745 and later the price corrected lower. It traded below the 23.6% Fib retracement level of the last wave from the $3,346 low to $3,745 high. However, there are many supports on the downside, starting with $3,575. The next major support is near the $3,550 level. It represents the 50% Fib retracement level of the last wave from the $3,346 low to $3,745 high.
Looking at the chart, BTC price is clearly forming a consolidation pattern above the $3,575 support. There could be a few swing moves, but later the price might rally further above $3,750. The next key stops for buyers could be $3,800, $3,880 and $4,000 in the coming days.
4-hours MACD – The MACD for BTC/USD is currently reducing its bullish slope.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 70 level.
Major Support Level – $3,550
Major Resistance Level – $3,750