Bitcoin Price Watch: BTC/USD Could Recover Toward $4,800

Key Points

  • Bitcoin price extended losses and traded close to the $ 4,000 support against the US Dollar.
  • There was a break above a major bearish trend line with resistance at $ 4,451 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The price seems to be preparing for an upside correction towards the $ 4,800 level in the near term.

Bitcoin price declined towards $ 4,000 before buyers appeared against the US Dollar. BTC/USD could correct higher towards the $ 4,750 or $ 4,800 resistance.

Bitcoin Price Analysis

Yesterday, we discussed that bitcoin price could tumble towards the $ 4,000 support area against the US Dollar. The BTC/USD pair did decline further and traded below the $ 4,500 and $ 4,400 support levels. The price fell close to the $ 4,000 level and a new multi month low was formed at $ 4,038. Later, the price corrected above $ 4,200, but it is still well below the 100 hourly simple moving average.

The recent upside move was positive since the price broke the $ 4,400 resistance. Moreover, there was a break above a major bearish trend line with resistance at $ 4,451 on the hourly chart of the BTC/USD pair. The pair even traded above the 50% Fib retracement level of the recent decline from the $ 4,763 high to $ 4,038 low. It seems like the price may correct further towards the $ 4,750 level in the near term. An immediate resistance is $ 4,600 and the 76.4% Fib retracement level of the recent decline from the $ 4,763 high to $ 4,038 low. Above $ 4,600 and $ 4,750, the price could test the $ 4,800 resistance.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price seems to be correcting from the $ 4,038 low. In the short term, there could be a recovery towards $ 4,800, but any further gains are likely to be contained below $ 5,000.

Looking at the technical indicators:

Hourly MACD – The MACD for BTC/USD is back in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI is currently just above the 50 level.

Major Support Level – $ 4,220

Major Resistance Level – $ 4,800

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Analysis – NewsBTC

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