Bitcoin price is setting up for the next key break against the US Dollar. BTC could either rally above $3,900 or decline below the $3,800 support in the coming sessions.
Bitcoin Price Analysis
After a sharp drop, bitcoin price found support near the $3,800 level against the US Dollar. The BTC/USD pair traded as low as $3,801 and later started a decent rebound. It traded above the $3,825 and $3,830 resistance levels to move into a short term positive zone. There was a break above the $3,850 level and the 50% Fib retracement level of the last decline from the $3,911 high to $3,800 swing low. However, the upside move was capped by the $3,880 resistance and the 100 hourly simple moving average.
The 61.8% Fib retracement level of the last decline from the $3,911 high to $3,800 swing low also acted as a resistance. There were a couple of failures to clear the $3,880 barrier, but buyers failed. Besides, yesterday’s highlighted important bearish trend line is in place with resistance at $3,860 on the hourly chart of the BTC/USD pair. If there is an upside break above the trend line, $3,870, and the 100 hourly SMA, there could be more gains.
The next stop for buyers could be $3,900, above which there are chances of more gains towards the $3,950 and $3,980 levels. The key resistance for a larger rally is near the $4,000 level. On the downside, an initial support is near the $3,825 level. If there is a break below $3,825, the price may struggle to hold the $3,800 support as well.
Looking at the chart, bitcoin price is facing a solid barrier near the $3,860 level and the 100 hourly SMA. In the short term, there could be a minor dip before the price makes an attempt to climb higher. The $3,860 and $3,880 levels are important, above which the chances of a strong upward move are likely to increase.
Technical indicators:
Hourly MACD – The MACD is placed is currently flat in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently just above the 50 level, with a positive angle.
Major Support Levels – $3,825 followed by $3,800.
Major Resistance Levels – $3,860, $3,880 and $3,900.
