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- The price of bitcoins reached a new monthly high of $ 4,064 and was adjusted downward against the US dollar.
- The price fell well below $ 3,950, but the lows remained sustained above $ 3,900.
- There is a crucial uptrend line formed with support at $ 3,920 on the 4-hour chart of the BTC / USD pair (data feed from Kraken).
- The pair remains well supported on troughs close to the $ 3,920 level and the single moving average (4 hours).
The price of bitcoin is still in an uptrend despite recent bearish movements against the US dollar. BTC / USD should find a strong buy interest if it moves to $ 3,940 or $ 3,920.
Bitcoin Price Weekly Analysis (BTC)
Last week, the price of bitcoin against the US dollar crossed the $ 4,000 mark. The BTC / USD pair traded in a range above the $ 3,940 support level and finally surpbaded the $ 4,000 resistance level. Buyers pushed the price above the resistance of $ 4,020 and a new monthly record was set at $ 4,064. However, buyers failed to maintain gains of more than $ 4,020, resulting in a sharp drop below $ 4,000. The price fell sharply and exceeded support levels of $ 3,960 and $ 3,940.
There was even a peak below the $ 3,900 support and the single moving average (4 hours). That said, buyers defended the support of $ 3,900 and the price rebounded sharply above $ 3,940. There was a break above the Fib retracement level of 50% of the last decline from $ 4,064 to $ 3,869. The recent recovery was strong, but the price was facing a strong supply zone close to the resistance of 4,000 USD. The Fib retracement level of 61.8 percent from the latest decline, from the peak of $ 4,064 to $ 3,869, was also an obstacle.
For now, the price is consolidating under the resistance of $ 4,000. In addition, there is a downtrend line linking resistance to $ 3,990 on the four-hour chart of the BTC / USD pair. A sharp break above the trend line and $ 4,000 could pave the way for a new bullish movement. On the other hand, there are many supports close to the levels of $ 3,940 and $ 3,920. There is also a crucial uptrend line forming with $ 3,920 support on the same chart.
Looking at the chart, the BTC price is clearly well supported down near the levels of $ 3,940 and $ 3,920. As long as the price is higher than the support of $ 3,900 and $ 100, there is a good chance that the increases will continue in future sessions. Buyers can wait for a break above resistance levels of $ 4,000 and $ 4,020 to take control.
Technical indicators
4 hours MACD – The MACD for BTC / USD is slightly placed in the bearish zone.
RSI (Relative Strength Index) 4 hours – The RSI for BTC / USD is currently well below the 50 level.
Major Support Level – $ 3,900
Major resistance level – $ 4,020
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