Bitcoin Price Analysis: 100 SMA As Resistance For BTC/USD
Bitcoin price after trading down vs the US dollar found bids near $447, and started to correct higher. BTC/USD during the correction managed to break a bearish trend line formed on the hourly chart (data feed via Bitstamp).
However, the upside after the break was limited, as the price found resistance near the 100 hourly simple moving average, which acted as a hurdle for the BTC bulls.
Bitcoin price broken trend line retest
Bitcoin price as mentioned started to correct higher, and broke a bearish trend line on the hourly chart. However, after the break it found resistance near the 100 hourly SMA, which was also coinciding with the 50% Fib retracement level of the last drop from the $465 high to $447 low.
The price was unable to trade above the 100 hourly SMA, and currently moving down once again. BTC to USD is about to retest the broken trend line, which may now act as a support area for the bulls.
The hourly RSI is still above the 50 level, which is a positive sign. So, as long as the price stays above the broken trend line on the hourly chart, there is a high probability of it gaining traction once again.
However, on the upside, the 100 hourly SMA remains a major barrier for the BTC buyers. So, if you are looking to buy, then keep a close eye on the 100 hourly SMA.
On the downside, a stop can be below $450, as a break of the mentioned level may call for more losses in the short term.
The hourly MACD is about to move in the bearish slope, which is a not a good sign and may put the bulls under a lot of pressure.
Chart Source – TradingView.com and data feed by Bitstamp