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Bitcoin Price Analysis: BTC Rally Could Extend To $5,850 or $5,980

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Bitcoin price climbed higher sharply above $5,500 and $5,600 against the US Dollar. BTC is likely to extend gains towards the next key resistance at $5,850, and dips remain supported.

Bitcoin Price Analysis

The past few sessions were super bullish since there were strong gains in bitcoin price above $5,450 against the US Dollar. Earlier, the BTC/USD pair traded as low as $4,899 and formed a decent support base above the $5,000 level. Finally, the price started an upward move above the $5,250 level and the 55 simple moving average (4-hours). The bulls were able to clear the $5,360 resistance and the 76.4% Fib retracement level of the major decline from the $5,491 high to $4,899 low.

It cleared the doors for more gains above the $5,400 level. The price traded to a new yearly high above the $5,550 level. It traded towards the $5,640 level and tested the 1.236 Fib extension level of the major decline from the $5,491 high to $4,899 low. Recently, there was a downside correction, but the $5,500 and $5,490 swing high acted as a strong support and prevented further losses. There was a fresh increase and it seems like the price is ready to surpass the $5,650 resistance.

The next major resistance is near the $5,850-60 area. It represents the 1.618 Fib extension level of the major decline from the $5,491 high to $4,899 low. Above $4,850, the price could test the next key resistance near the $4,980 level. Conversely, if there is a downside correction, the price could test the $5,400 support. There is also a major bullish trend line in place with support at $5,440 on the 4-hours chart of the BTC/USD pair.

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Looking at the chart, bitcoin price remains well bid on the downside and it is likely to clear the $5,650 resistance. The next stop for the bulls could be $5,850 or $5,980. On the downside, a break below the $5,400 support may push the price towards $5,260 and the 55 simple moving average (4-hours).

Technical indicators

4 hour MACD – The MACD is gaining momentum in the bullish zone.

4 hour RSI (Relative Strength Index) – The RSI is currently well above the 60 and 70 levels.

Key Support Levels – $5,500 and $5,400.

Key Resistance Levels – $5,650, $5,850 and $5,980.