Bitcoin Price Analysis: BTC/USD Crucial Break Noted
Bitcoin price managed to traded higher vs the US Dollar recently, and broke a major resistance area. It looks like BTC/USD is positioning for more upsides in the near term as long as it stays above the 100 hourly simple moving average.
BTC/USD after trading as low as $440 started to trade higher, and managed to gain bids. There was a bearish trend line formed on the hourly chart of the BTC to USD (data feed via Bitstamp), which was cleared by the BTC bulls during the upside drift.
The most important point is that the price managed to close above the 100 hourly simple moving average, which is a bullish sign, and may take the price higher.
Bitcoin Price Buy?
Bitcoin price after breaking the highlighted trend line and resistance area traded as high as $452. It is now correcting lower and trading near the same broken trend line and the 100 SMA, which are acting as a support area.
Moreover, the 23.6% Fib retracement level of the last wave from the $438 low to $452 high is also coinciding with the trend line. All in all there is a major support formed near $450. As long as the price is above it, there is a chance of an upside move back towards the recent high of $452.
There is even a possibility of more gains, if BTC/USD breaks $452. A bullish momentum could easily take the price above the $455 level.
On the downside, the 100 hourly SMA holds the key, and as long as it holds, the bullish bias may remain intact. A break below it could call for more losses in the short term.
In terms of technical indicators, the hourly RSI is above the 50 level, which is a positive sign. However, the MACD is about to change the slope to the bearish area, which can be seen as a warning to the bulls.
So, if you are planning to buy, then keep a close eye on the 100 hourly SMA.
Chart Source – TradingView.com and data feed by Bitstamp