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Bitcoin (BTC) Price Analysis: Bulls Outperform Themselves – BTC/USD In The Green

  • Bitcoin reacted to a double-bottom pattern form around $4,950.
  • Bitcoin resumed the uptrend into a positive area past $5,160.

The session on Tuesday saw Bitcoin refresh the lows around $4,950. The retracement was necessary as Bitcoin encountered support congestion and overwhelming buying interest leading to a reversal. The price formed a double-bottom pattern close to $4,950. The pattern is usually interpreted as a positive sign and in this case, reaction to the pattern sent BTC/USD above $5,100 resistance as well as the 100 simple moving average (SMA) signaling a strong bullish move.  A break occurred above the 50% Fibonacci retracement level between the last swing high of $5,270.02 and a drop to $4,951.18.

Significantly, the visible bearish trendline shown yesterday did not hold back the buyers who breached the resistance at $5,097.36. This incredible move attracted more buying entries leading to another break above the resistance area at $5,120.00 – $5,160.00 (previously broken support). This paved the way for further gains that pulled Bitcoin above $5,200 as well as $5,250. A weekly high from at $5,270 before gain consolidation slightly above $5,200 commenced.

Bitcoin Price Analysis chart source: TradingView

Bitcoin is initially supported at $5,200 (current pivotal level). This means that a swing in either direction of this level could result in either considerable gains towards $5,400 or considerable gains that could refresh the support at $5,100 for the second time this week. Other support areas to look out for in the short-term include the 61.8% Fib level, $5,120 – $5,160 (main support) 23.6% Fib level (yesterday’s hurdle), the 100 SMA 1-hour, $5,000 and $4,950.

Also Read: Binance Coin (BNB) Price Prediction Today: Overwhelmingly Positive Levels – Eyeing $21.00

A broader look at the chart shows Bitcoin resumed the uptrend into a positive area past $5,160. It is likely that a retracement will occur. However, we can expect the bulls to strongly protect $5,120 – $5,160 support area. Moreover, $5,100 is also in a position to offer support. The upside is limited at $5,270 while further correction could test $5,400 and reignite gains towards $5,400.

Bitcoin Key Technical Indicators

MACD 1-hour: +21.56 (sits comfortably in the positive zone).

RSI 1-hour: 53.1946 after correction from levels above 60.00

Primary support area: $5,120 – $5,160

Critical resistance areas: $5,270, $5,300 and $5,400.

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