Bitcoin Price Analysis: BTC/USD About To Recover?
Bitcoin price traded lower yesterday against the US Dollar and tested the $660 support area, where the BTC/USD pair found bids. Can it recover moving ahead?
Yesterday’s I highlighted a break in the BTC/USD pair, which ignited a downside move. However, the price is currently stable and looks set for the next move in the near term.
Bitcoin Price Support
The BTC looks like gaining traction near the $660 support area against the US Dollar. There is a minor consolidation underway, which can then ignite the next move. Let us try to see which way the price might head moving ahead.
Currently, there is a bearish trend line formed on the hourly chart chart (data feed via Bitstamp) of BTC/USD, which is acting as a resistance and preventing the upside. However, it looks like there is a high probability of BTC/USD gaining pace and breaking the highlighted trend line and resistance area.
At this moment, the price is trading near the 23.6% Fib retracement level of the wave from the $684 high to $659 low. A break above it could open the doors for more upsides in BTC/USD.
The next resistance in that situation could be around the 100 hourly simple moving average, which is just below the 50% Fib retracement level of the wave from the $684 high to $659 low.
On the downside, the most important support is at $660. An hourly close below it may call for a change in the trend for BTC/USD.
In my view, there is a high chance of a break higher, and one may consider buying with a break and a stop below the $660 level.
The hourly RSI is above the 50 level, which is a positive sign for the BTC bulls in the short term.
Chart Source – TradingView.com and data feed by Bitstamp