Bitcoin Price Analysis: Can BTC/USD Break This Resistance?
Bitcoin price started a recovery vs the US Dollar after trading as low as $451. BTC/USD is currently testing a major resistance area in the form of a bearish trend line formed on the hourly chart (data feed via Bitstamp).
Let us try to analyze and check if the BTC buyers can manage to break the highlighted trend line and resistance area.
Bitcoin price to break higher?
Yesterday, I highlighted a bullish trend line break on the hourly chart (data feed via Bitstamp) of BTC/USD, which ignited a downside move. The price traded as low as $451 after the break, and currently attempting a recovery.
BTC buyers already managed to break the 23.6% Fib retracement level of the last drop from the $458 high to $451 low. However, they are facing a resistance near a bearish trend line formed on the hourly chart (data feed via Bitstamp).
The hourly RSI is above the 50 level, which means there is a chance that Bitcoin price may break the highlighted trend line and resistance area to trade higher.
If it breaks higher, then the 61.8% Fib retracement level of the last drop from the $458 high to $451 low can be tested. It holds a lot of importance, as the 100 hourly simple moving average is positioned near it.
If at all the BTC bulls fail to take the price higher, then BTC/USD may fall back and even retest the last swing low of $451.
The hourly MACD is in the bullish slope, and showing positive signs. So, I feel the chances of price moving higher are a lot of more, compared with a downside move. One may consider buying with a break above the highlighted trend line and resistance area with a stop of no more than a point.
Chart Source – TradingView.com and data feed by Bitstamp