Bitcoin Price Analysis: Resistance Now Support For BTC/USD
Bitcoin price yesterday cleared a major resistance area against the US dollar, and now the same area is acting as a support zone for BTC/USD.
There is also a bullish trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD, which is acting as a hurdle for the BTC sellers.
Bitcoin Price Support
The BTC after trading as low as $645 started to recover against the US Dollar and also broke the 38.2% Fib retracement level of the wave from the $684 high to $645 low. However, the price later struggled and started to move down once again.
Currently, 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 leg from the $645 low to $664 high is also acting as a support zone.
Furthermore, there is also a bullish trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD, providing bids to the ETH/USD pair.
Overall, there are many support areas on the downside for Bitcoin price, and it won’t be easy for the BTC sellers to push the price lower.
If sellers do succeed in breaking the highlighted trend line and support area, then the price could even trade near the last swing low of $645. One bearish sign is the fact that the price is now below the 100 hourly simple moving average.
In my view, there is a chance of one more minor upside, as long as the price is above the trend line support. However, the bulls need to clear the 100 hourly SMA.
The RSI has moved above the 50 level, which is a positive sign in the short term.
Chart Source – TradingView.com and data feed by Bitstamp