- Bitcoin price is currently consolidating above the $3,820 and $3,840 supports against the US Dollar.
- The price placed in a positive zone, with a bullish angle towards the $4,000 resistance.
- There is a symmetrical triangle pattern formed with resistance at $3,880 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair will most likely break the $3,880 and $3,900 resistance levels to climb above or challenge $4,000.
Bitcoin price is forming a bullish breakout pattern above the $3,800 support against the US Dollar. BTC could surge above the $3,900 and $4,000 resistance levels in the near term.
Bitcoin Price Analysis
After a strong upward move above the $3,850 level, bitcoin price started consolidating gains against the US Dollar. The BTC/USD pair tested the $3,900 resistance on a couple occasions and later corrected lower. It declined below the $3,850 level, but downside were limited. The last swing low was formed at $3,831 before the price recovered above $3,840. There was a break above the 50% Fib retracement level of the recent slide from the $3,892 high to $3,831 low.
However, the price is currently facing a strong resistance near the $3,880 and $3,890 levels. Besides, the 76.4% Fib retracement level of the recent slide from the $3,892 high to $3,831 low is acting as a resistance. More importantly, there is a symmetrical triangle pattern formed with resistance at $3,880 on the hourly chart of the BTC/USD pair. Therefore, it seems like the pair is setting up for the next break, which could be above $3,880. If there is a successful close above $3,880 and $3,900, the price may surge higher towards the $4,000 resistance level.