Bitcoin price traded higher and broke the $4,000 resistance level. However, BTC/USD once again failed to clear the $4,095 resistance area and it is currently correcting lower.
- BTC price tested the main resistance area near the $4,090 and $4,100 levels.
- A major bullish trend line is in place with support at $3,860 on the 30-minute chart.
- The price must break the $4,095 and $4,100 resistance levels to climb towards $4,400.
Bitcoin Price Analysis
After forming a support base near the $3,770, bitcoin price started an upward move. Altcoins like Ethereum, ripple and EOS are also placed in a bullish path and they may continue to move higher. However, there are many hurdles for BTC/USD near the $4,090 and $4,100 levels.
Click to Enlarge Chart
Looking at the 30-minute chart of BTC/USD, the pair spiked towards the $4,100 level recently, but buyers clearly struggled to break the $4,090 and $4,100 levels. A high was formed at $4,086 and later the price corrected lower.
It declined below $4,050 and tested the 25 simple moving average (30-minute). It is currently testing the 23.6% Fib retracement level of the recent leg from the $3,788 low to $4,086 high. On the downside, there are many supports near the $4,000 and $3,940 levels.
More importantly, the 50% Fib retracement level of the recent leg from the $3,788 low to $4,086 high is placed near the $3,938 level. Therefore, if the price continues to move down, it may find a strong support near the $3,940 level.
If there are more declines, the price may test the $3,900 support. Below this, there is a major bullish trend line is in place with support at $3,860 on the same chart.
On the upside, buyers need to gain pace above the $4,090 and $4,100 resistance. There were multiple rejections noted around the $4,090 zone and it seems like it is a major breakout level for both buyers and sellers. Overall, bitcoin price remains supported on dips and BTC could make another attempt to clear the $4,100 resistance area.
The market data is provided by TradingView, Bitfinex.
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