Bitcoin Price Analysis: BTC/USD About To Break?
Bitcoin price may have completed a correction phase vs the US Dollar, and it looks like BTC/USD is setting up for a break.
There is a breakout pattern forming on the hourly chart (data feed via Bitstamp) of BTC/USD, which may ignite the next move in the near term.
Bitcoin Price To Move Higher?
BTC corrected a few points’ yesterday vs the US Dollar, and tested the $517 support area. There was a nice reaction around the stated level, and the price started to trade higher once again.
The $517 level was coinciding the 38.2% Fib retracement level of the last move from the $468 low to $548 high, which means there is a high probability that the price completed a correction, and may trade further higher.
Currently, there is a breakout pattern (contracting triangle) forming on the hourly chart (data feed via Bitstamp) of BTC/USD. It is on the verge of a break on the either side. The chances of it breaking higher is more since there are many bullish signs.
The price is also above the 100 hourly simple moving average, which is just below the triangle support area. So, if the BTC bulls manage to break the triangle resistance area, then a move towards the $550 level is possible.
My view is that the price may be heading higher, but if it fails to do so, then a break below the triangle support area could take the price towards the 50% Fib retracement level of the last move from the $468 low to $548 high.
The hourly RSI is above the 50 level, which is a positive sign for the BTC bulls. Let us wait and see whether there can be a break above $550 level or not moving ahead.
Chart Source – TradingView.com and data feed by Bitstamp