Bitcoin Price Analysis: Is This Break BTC/USD Needed?
Bitcoin price traded down before closing this past week against the US Dollar, but it looks like BTC/USD has finally found support and may trade higher once again.
In the last analysis, I highlighted a bearish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD, which was broken during the recent upside recovery.
Bitcoin Price Correction
The BTC was under a bearish pressure this past week against the US Dollar, as it moved down to trade near the $645 level. However, a recovery started later, as the pair bounced from the mentioned level and broke a short-term resistance on the way up.
This past week in an analysis, I highlighted a bearish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD. The BTC bulls managed to break the highlighted trend line and resistance to open the doors for more gains.
The upside move found sellers near the 50% Fib retracement level of the wave from the $684 high to $645 low. However, the best part is the fact that the pair closed above the 100 hourly simple moving average. It is currently providing bids and acting as a support.
If the 100 hourly SMA continues to act as a support area for BTC/USD, then there is a chance of another ride higher in the near term. In that case, the next level of interest would be around the 61.8% Fib retracement level of the wave from the $684 high to $645 low.
On the other hand, a downside break may open the doors for a move towards the $650 level. The hourly RSI is above the 50 level, which is a good sign and may take the pair higher moving ahead as long as the 100 hourly SMA is intact.
Chart Source – TradingView.com and data feed by Bitstamp