Bitcoin Price Analysis: BTC/USD To Continue Higher?
Bitcoin price started a recovery after trading as low as $435 vs the US Dollar. It looks like the price is gaining pace and may continue to trade higher in the near term.
There is now a bullish trend line formed on the hourly chart of BTC/USD (data feed via Bitstamp), which is acting as a support area and pushing the price higher.
Bitcoin price upside?
BTC managed to gain bids recently vs the US Dollar, and traded above the $440 resistance area, which is a positive sign. One key factor is the fact that the price is above the 100 hourly simple moving average, suggesting that the BTC buyers had an upper hand.
As mentioned, there is a bullish trend line formed on the hourly chart of BTC/USD (data feed via Bitstamp), which may play a major role for the price moving ahead.
As long as the price is above the trend line support, there is a possibility of it gaining pace further and trade above the $450 level. On the downside, the trend line is also around the 23.6% Fib retracement level of the last wave from the $435 low to $446 high, pointing towards the importance of the $442-3 support area.
Only a break and close below the trend line support may call for more downsides in the short term. In that situation, the price may head towards the 50% Fib retracement level of the last wave from the $435 low to $446 high.
However, my bet will be on more gains, as long as the trend line support holds. So, if you are looking to enter into a buy trade, you can keep a stop below it. For a medium term trader, a stop can also be below the 100 hourly simple moving average.
Chart Source – TradingView.com and data feed by Bitstamp