Bitcoin Price Analysis: Is This Break BTC/USD Needed?

Bitcoin Price Analysis

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.

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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1 Response

  1. July 26, 2016

    […] the price is finding support near yesterday’s broken bearish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD. Most importantly, the 50% Fib retracement level of the last […]

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