Bitcoin price $4,975 Key BTC resistance levels $5,250, $5,450 Key BTC support levels $4,850, $4,200

Bitcoin has continued to surge over the past day rising by a total of 5% over the past 24 hours. The cryptocurrency is now trading at a price of $4,975 after seeing an impressive 22% price rise over the past 7 trading days.

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In our previous Bitcoin analysis, we had highlighted that the market had broken above the 100-day moving average and a long term descending trend line. It has appeared that this proved to be a strong catalyst as the market then continued to surge above the $4,000 level over the following days.

Bitcoin now holds a $87.75 billion market cap value as it makes its way back toward the $100 billion level again.

Bitcoin price analysis

What has been going on?

After penetrating above the 100-day moving average, the BTC market continued to rally higher, breaking above resistance at $4,449, $4,558 and $4,848. The market had briefly spiked above the $5,000 level but was unable to close above as the market fell into support at $4,848.

Price action has now recovered almost half of the losses that were experienced during the November 2018 blood bath, which saw Bitcoin fall from a high above $6,500 to a low of around $3,200.

The world's most valuable cryptocurrency is now trading at the $4,975 level and is ready to make an attempt above the $5,000 level once again.

What is the current short term trend?

The current short term trend is most certainly bullish. For the bullish trend to be invalidated, we will need to see price action fall beneath the $4,200 level.

Where is the market likely to head next?

If the bullish pressure continues to cause BTC/USD to climb higher, we can expect immediate resistance above to be located at the bearish .618 Fibonacci Retracement level (drawn in blue) priced at $5,247. This long-term Fibonacci Retracement level is measured from the November 2018 high to the December 2018 low.

Above $5,247, higher resistance lies at the short term 1.272 and 1.414 Fibonacci Extension levels (drawn in purple) priced at $5,455 and $5,652, respectively. This is then followed up with higher resistance at the bearish .786 FIbonacci Retracement level (drawn in blue) priced at $5,814.

If the bulls can clear the $5,814 region, it leaves the market open to make an attempt at $6,000.

What if the sellers step back in?

Alternatively, if the sellers regroup and start to cause BTC/USD to fall, initial support is expected at the $4,848 level where the bearish .618 Fibonacci Retracement lies. Beneath this, we can then expect more support at the $4,733, $4,558 and $4,449 levels.

If the sellers continue to cause BTC/USD to drop further lower, more strong support is then located at $4,200.

What are the technical indicators reading?

The RSI is in bullish territory, above 50, but is overstretched and has now reached overbought conditions. This could indicate that the market needs to pullback slightly before it will be able to travel further higher.

All of the moving averages are now aligned in a bullish trading manner which is a strong positive sign that, after a possible pullback, the Bitcoin price rise will continue over the next few days.

Alternative BTC price analysis

BKCM co-founder recently discussed what Tuesday's surge means for the Bitcoin market. He noted that several indicators are pointing to a sentiment shift, and that $6,000 - $6,500 are important levels to watch out for as they formed a major support for BTC before its price took a nosedive in November last year.