Bitcoin Price Analysis: BTC/USD Attempting To Recover
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.
Chart Source – TradingView.com and data feed by Bitstamp