Bitcoin price traded higher and broke the $3,350 and $3,585 resistance levels against the US Dollar. BTC/USD is likely to climb further towards $3,988 where sellers may emerge.
- Bitcoin price climbed higher sharply and broke the $3,585 resistance zone.
- BTC is following a steep bullish trend line with support at $3,700 on the 2-hours chart.
- The price may continue to rise towards the $3,988 resistance area in the near term.
Bitcoin Price Analysis
In the last analysis, we discussed that bitcoin price could be eyeing a short-term reversal above the $3,350 resistance against the US Dollar. BTC/USD did move higher and broke the $3,350 and the $3,585 barrier to move into a bullish zone.
The 2-hours chart indicates that the price started a solid bullish move from the $3,154 low and climbed above the $3,350 pivot area. There was a break above a key bearish trend line and the 76.4% Fib retracement level of the last drop from the $3,669 high to $3,154 low.
More importantly, the price settled above the $3,585 resistance and the 100 simple moving average (2-hours). It opened the doors for more gains and the price climbed above the $3,669 high.
At the outset, the price is trading near the 1.236 Fib extension level of the last drop from the $3,669 high to $3,154 low. It seems like the price may continue to move higher towards the $3,988 level, which is the 1.618 Fib extension level of the same drop.
If there is a downside correction, the price might find bids near a steep bullish trend line with support at $3,700 on the same chart. A break below the trend line support may kick start an extended downside correction towards the $3,585 level, which was a resistance earlier and now it could hold losses.
Overall, bitcoin price jumped into a bullish zone above $3,700 with a lot of strength. However, BTC must surpass the $3,988 and $4,000 resistance levels to extend gains and remain in a nice uptrend in the coming days.
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