Bitcoin Price Analysis: BTC/USD Testing Crucial Support
Bitcoin price started to move down vs the US Dollar, and broke an initial support area to signal sellers a downside move in the short term.
Our long followed two bullish trend lines on the hourly chart (data feed via Bitstamp) of BTC/USD were put to test, and out of which one was broken during the downside move.
Bitcoin Price Buy Dips
BTC price traded a few points’ lower vs the US Dollar, as there was minor selling pressure on BTC/USD. One negative point is the fact that the price moved below the 100 hourly simple moving average, which might ignite more losses in the near term.
The next important thing to note is the fact that there was a break below the first bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD out of the two trend lines, which we are following for the past 2-3 days.
However, one positive was the fact the price stalled right around the second bullish trend line, which acted as a support and prevented any further downside. The price already bounced once, but it is now facing sellers near the broken 100 hourly SMA which is acting as a resistance.
The 100 hourly SMA is just below the 50% Fib retracement level of the last drop from the $594.86 high to $563.26 low, which is also playing its part and staling a recovery. As long as the price is below the 100 hourly SMA, it may remain under a bearish pressure.
However, we cannot discard the fact that the bullish trend line is very important, and might act as a barrier for sellers, as I mentioned earlier. So, if you are a buyer, then you can still consider a buy trade as long as the price is above it.
Chart Source – TradingView.com and data feed by Bitstamp