Bitcoin price started a strong rally above ,650 against the US Dollar. BTC is trading above ,000 and could gain momentum above the ,500 resistance.
- Bitcoin started a strong increase above the ,500 and ,650 resistance levels.
- The price is trading above ,000 and the 100 hourly simple moving average.
- There is a key contracting triangle forming with resistance near ,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start another increase if there is a clear move above the ,500 resistance.
Bitcoin Price Starts Fresh Surge
Bitcoin price remained well bid above the ,000 and ,200 support levels. BTC formed a base and started a fresh increase above the ,650 resistance levels.
It gained over 5% and there was a clear move above the ,000 resistance. During the increase, there was a move above a connecting bearish trend line forming with resistance near ,300 on the hourly chart of the BTC/USD pair.
Bitcoin price is now trading above ,000 and the 100 hourly simple moving average. A high was formed near ,400 and the price is now consolidating gains.
There was a minor decline below the 23.6% Fib retracement level of the recent increase from the ,266 swing low to ,400 high. On the upside, an immediate resistance is near the ,300 level. There is also a key contracting triangle forming with resistance near ,300 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
The first major resistance sits near the ,400 level. The next major resistance might be ,500. A clear move above the ,500 resistance might send the price towards the ,200 resistance. Any more gains might set the pace for a steady increase towards the ,000 resistance zone.
Downside Correction in BTC?
If bitcoin fails to rise above the ,500 resistance zone, it could start a downside correction. An immediate support on the downside is near the ,200 zone.
The next major support is near the ,800 zone. It is near the 50% Fib retracement level of the recent increase from the ,266 swing low to ,400 high. A downside break and close below ,800 might open the doors for a fresh test of the ,500 support.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now in the overbought zone.
Major Support Levels – ,200, followed by ,800.
Major Resistance Levels – ,300, ,400 and ,500.