Bitcoin Price Analysis: BTC/USD About To Break?
Bitcoin price continued to gain bids vs the US Dollar, but BTC/USD is lagging momentum, which is stopping it from an upside thrust.
The price just broke a major breakout pattern on the hourly chart (data feed via Bitstamp) of BTC/USD, which may call for more gains in the short term.
Bitcoin Price To Climb Further?
BTC moved a few points lower yesterday vs the US Dollar, and tested the 100 hourly simple moving average, which acted as a support area. The price gained bids and managed to move higher once again.
It also found support bear the 23.6% Fib retracement level of the last move from the $485 low to $548 high. During the upside move, it broke a breakout pattern (contracting triangle) on the hourly chart (data feed via Bitstamp) of BTC/USD.
So, it looks like the BTC bulls are stepping in, and if they stay in control, there is a chance of BTC/USD gaining pace moving ahead.
If the recent break is true, then the price may head towards the lasts swing high of $548 where sellers may appear to defend the upside move.
I think there is a real chance of BTC/USD testing the $550 level in the short term as long as the price is above the 100 hourly SMA. Only a break and close below the 100 SMA may ignite a larger correction in BTC/USD. In that situation, the price might test the 50% Fib retracement level of the last move from the $485 low to $548 high.
The hourly RSI is well above the 50 level, suggesting that BTC may continue to move higher. Moreover, the hourly MACD looks like may change the slope to the bullish zone, which could support the bulls moving ahead.
Chart Source – TradingView.com and data feed by Bitstamp