Bitcoin Price Analysis: BTC/USD About To Recover?

Bitcoin Price Analysis

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.

Happy Trading!

Chart Source – TradingView.com and data feed by Bitstamp

Aayush Jindal

Aayush has spent over EIGHT years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets.

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