Key Points

Bitcoin price after a strong correction found support at $2040 against the US Dollar, and started a recovery.

There is a monster ascending channel forming with support at $2260 on the 4-hours chart of BTC/USD (data feed from SimpleFX).

The price may soon gain momentum and break $2700 for a move towards the last swing high at $2970.

Bitcoin price corrected lower from $2970 against the US Dollar, and now BTC/USD is back above $2400 and looking for a move towards $3000.

Bitcoin Price Resistances

In the last weekly analysis, I highlighted the chances of Bitcoin price moving towards $3000 against the US Dollar. The price did break $2880 and moved towards $3000. However, there was no complete test of $3000, as the price traded as high as $2970. Sellers appeared and ignited a downside move below $2900. A correction wave started and the price fell sharply below the $2500 and $2300 supports.

However, there was no close below the $2000 support, which is a positive sign. The price traded as low as $2043, and later started an upside move. It has already breached the 50% Fib retracement level of the last decline from the $2972 high to $2043 low. Furthermore, there was a break above a bearish trend line at $2500 on the 4-hours chart of BTC/USD. It is a positive sign since the price is above $2500.

Now, the price needs to break the 61.8% Fib retracement level of the last decline from the $2972 high to $2043 low at $2620. Furthermore, a break and close above the 100 simple moving average at $2600-20 could ignite further gains. There is also a monster ascending channel forming with support at $2260. As long as the price is an uptrend, it may test the channel resistance at $3050-80.

Looking at the technical indicators:

4-hours MACD – The MACD is moving back in the bullish zone.

4-hours RSI (Relative Strength Index) – The RSI is currently above 50, and heading higher.

Major Support Level – $2500

Major Resistance Level – $2970

Charts courtesy – SimpleFX