Bitcoin Price Analysis: BTC/USD Trading Bullish
Bitcoin price finally managed to gain bids against the US dollar, as the BTC/USD pair traded higher by more than $15 during the past 24 hours.
There is a major bullish trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD, which may act as a crucial support area on the downside moving ahead.
Bitcoin Price Support
BTC moved higher during the past 24 hours and registered good gains against the USD. There was a break above the $650-55 levels, which ignited an upside move.
The price traded as high as $678 where sellers appeared to defend any further gains. The price is currently correcting lower, but it may find support on the downside. As mentioned, there is a major bullish trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD.
The highlighted trend line support may play a critical role for the next move in the BTC/USD pair. As long as the price is above it, there is a chance of more upsides in the short term.
Moreover, on the downside, an initial support is around the 23.6% Fib retracement level of the last leg from the $605 low to $678 high. The most important point is that the 100 hourly simple moving average is positioned with the highlighted trend line support to act as a perfect barrier for the BTC sellers.
In my view, buying dips remain a good option in the short term, as long as the price is above the highlighted trend line support and the 100 hourly SMA.
The hourly RSI is above the 50 level, which is a good sign for the people looking to buy BTC in the short term. We just need to keep a close eye on the highlighted trend line support.
Chart Source – TradingView.com and data feed by Bitstamp