Bitcoin Price Analysis: BTC/USD Attempting To Recover

Bitcoin

Bitcoin price yesterday traded down vs the Dollar and tested the $435 support area. However, the price is currently attempting to recover and may be heading towards a major resistance area.

As stated yesterday, there was a trend line formed on the 4-hours chart of BTC/USD (data feed via Bitstamp), which broken recently by the bulls.

Bitcoin price recovering?

BTC this week traded as low as $435 vs the US dollar, and currently making an attempt to recover the lost ground. There are a few positive signs emerging on the charts, suggesting more gains in Bitcoin moving ahead.

The price has closed above the 23.6% Fib retracement level of the last drop from the $458 high to $435 low, and it is looking set for a move towards $450.

However, there is a major resistance area formed near the stated level due to many reasons. First, the 50% Fib retracement level of the last drop from the $458 high to $435 low in near it. Second, the 100 simple moving average on 4-hours chart (data feed via Bitstamp) is positioned with the broken trend line support area.

So, if the price continues to move higher, then the $450 level may act as a major barrier for the BTC buyers. Only a successful close above the stated level may call for more upsides in BTC/USD in the short term.

On the downside, an initial support is at $440. However, the most important support is around the last swing low of $435. The 4-hours RSI is now above the 50 level, suggesting that the price is an uptrend and may continue to head higher.

The 4-hours MACD is also in the positive zone, and pointing towards buyers’ strength for BTC vs the USD.

Happy Trading!

Chart Source – TradingView.com and data feed by Bitstamp

Aayush Jindal

Aayush has spent over EIGHT years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets.

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1 Response

  1. May 25, 2016

    […] managed to gain bids recently vs the US Dollar, and traded above the $440 resistance area, which is a positive sign. One key […]

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