Bitcoin price traded towards the $3,150 support recently against the US Dollar. BTC/USD is currently recovering and it may trade past the $3,400 and $3,490 resistances.
- Bitcoin price formed a decent support base near the $3,150 level.
- BTC surpassed a major bearish trend line with resistance at $3,250 on the 2-hours chart.
- There could be more gains towards the $3,400 and $3,490 resistance levels.
Bitcoin Price Analysis
There was a downside extension below the $3,200 support in bitcoin price against the US Dollar. BTC/USD broke the $3,180 support and traded close to the $3,150 level where buyers emerged.
The 2-hours chart indicates that the price traded as low as $3,154 and later started a short term upside correction. It moved above the $3,225 resistance and the 50% Fib retracement level of the last decline from the $3,492 high to $3,154 low.
More importantly, there was a break above a major bearish trend line with resistance at $3,250 on the same chart. The price settled above the $3,250 level and it is currently trading with a positive bias. On the upside, there are many hurdles near the $3,400 and $3,490 levels.
Moreover, the 76.4% Fib retracement level of the last decline from the $3,492 high to $3,154 low is positioned at $3,410 to act as a resistance. At the outset, the price is trading near the $3,380 level and the 100 simple moving average (2-hours).
Therefore, there could be a short-term correction towards $3,350 or $3,330 before the price trades higher once again. On the upside, a successful close above the $3,400 resistance and the 100 simple moving average (2-hours) is likely to open the doors for an upward move towards the $3,490 swing high.
Above $3,490, the price could rally above $3,500 and $3,550 in the near term. On the downside, an initial support is at $3,330, below which the price may revisit the $3,250 support.
Overall, bitcoin price is showing a lot of positive signs above $3,330 and BTC may perhaps continue to rise towards the $3,490 level.
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