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Bitcoin (BTC) Price Starts Much Awaited Rally To $6K
Bitcoin price broke the main resistance at $5,400 and rallied sharply against the US Dollar.The price traded to a new 2019 high and it remains in an uptrend above $5,350.There is a major bullish trend line forming with support at $5,360 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair has likely started a strong upward move towards the $5,800 and $6,000 resistance levels.Bitcoin price rallied sharply above $5,400 and $5,600 against the US Dollar. BTC is likely to extend gains and it may continue to grind higher towards the $5,800 and $6,000 resistance.Bitcoin Price AnalysisAfter a short term downside correction, bitcoin price found support near the $5,200 level against the US Dollar. The BTC/USD pair formed a strong support base above $5,200 and later started a steady rise. There was a break above the $5,300 resistance and the 100 hourly simple moving average. The price traded in a range for a few hours and recently broke the key $5,350 resistance to start a strong rally. The bulls came into action and pushed the price above the $5,400 and $5,500 resistance levels (as discussed in the previous analysis).The price even broke the $5,600 level and traded to a new 2019 high at $5,641. Recently, it corrected gains below the $5,600 level and the 23.6% Fib retracement level of the recent rise from the $5,360 low to $5,641 high. However, the $5,500 level is currently acting as a decent support. The 50% Fib retracement level of the recent rise from the $5,360 low to $5,641 high is also near the $5,500 level.If there is a downside extension, the next key support is near the $5,420 level. It also coincides with the 76.4% Fib retracement level of the recent rise from the $5,360 low to $5,641 high. Moreover, there is a major bullish trend line forming with support at $5,360 on the hourly chart of the BTC/USD pair. Therefore, dips from the current levels are likely to face a strong buying interest near $5,400 and $5,360.Looking at the chart, bitcoin price started a strong rally above the $5,400 resistance (as per our weekly analysis post). The bulls are clearly in control and they could aim further gains above $5,600 and $5,650. The next stop could be near the $5,800 level. If there are further gains, the price is likely to test the all-important $6,000 resistance area.Technical indicators:Hourly MACD – The MACD is gaining momentum in the bullish zone.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD climbed higher sharply above the 60 and 70 levels.Major Support Levels – $5,500 followed by $5,420.Major Resistance Levels – $5,600, $5,640 and $5,800.
Author: Aayush Jindal
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