In the past few analysis, we discussed the importance of the $4,140 and $4,200 resistances for bitcoin. The BTC/USD pair formed a solid support base above the $3,900 level and it recently settled above the $4,000 pivot level. It opened the doors for more upsides since the price even settled above the $4,100 and the 100-day simple moving average. Today, bulls gained momentum, resulting in a strong upside break above the $4,200 and $4,400 resistance levels.
More importantly, there was a break above a crucial contracting triangle with resistance at $4,200 on the daily chart of the BTC/USD pair. These are strong bullish signs since the price settled above the $4,200 and $4,400 hurdles. The market sentiment improved and the price even spiked above the 50% Fib retracement level of the last decline from the $6,546 high to $3,122 swing low. The price even climbed towards the $5,200 barrier, but it failed to retain momentum.
There was no test of the 61.8% Fib retracement level of the last decline from the $6,546 high to $3,122 swing low. BTC retreated from highs and it is currently trading near the $4,750 level. On the downside, there are many supports near the $4,400 level. The recent rally above key resistances has cleared the path for more upsides above $5,000. If there is a downside correction, the previous important resistance at $4,200 is likely to act as a strong support.
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