Bitcoin Price Analysis: BTC/USD Upside Thrust
Bitcoin price started to move higher against the US dollar, and my yesterday’s view of more upsides in BTC/USD turned out to be correct.
Yesterday’s highlighted bearish trend line break on the hourly chart (data feed via Bitstamp) of BTC/USD was also valid, which ignited more gains in the short term.
Bitcoin Price Rise
BTC enjoyed a nice upside move against the USD, as it traded above the $650 resistance area. I forecasted a move towards the stated level, and the price even broke it.
Moreover, the price settled above the 100 hourly simple moving average, which is a positive sign for the BTC bulls. There is a bullish trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD, which can be considered as a support area if the price moves down.
Currently, the price is trading near the 61.8% Fib retracement level of the last drop from the $680 high to $610 low. So, there is a chance that the price may correct a few points before it can continue to move higher.
On the downside, I think we need to keep a close watch on the highlighted trend line and support area, as it may act as a buy zone. As long as the price is above the trend line support, BTC/USD may move towards the $672 level in the short term.
Only a break below the support area or an hourly close below the 100 hourly SMA might call for a downside move in BTC. I think buying dips may be considered as long as the price is above the 100 hourly SMA.
The hourly RSI is above the 50 level, suggesting that the BTC bulls are in action and may attempt to take the price further higher.
Chart Source – TradingView.com and data feed by Bitstamp