Bitcoin Price Analysis: BTC/USD Preparing For Ride?
Bitcoin price continued to trade in a range against the US dollar, and it looks like the BTC/USD pair is preparing for a move higher in the near term.
Yesterday’s highlighted expanding triangle pattern on the hourly chart (data feed via Bitstamp) of BTC/USD is still in play and may act as a pivot for a move higher.
Bitcoin Price Bounce
There was a range pattern noted for the BTC versus the US Dollar. The price was seen consolidating in a narrow range with a support on the downside at $650 and resistance on the upside at $658.
Moreover, the BTC/USD pair is flirting with the 100 hourly simple moving average, as both bulls and bears failed to make a close. Yesterday, I highlighted an expanding triangle pattern on the hourly chart (data feed via Bitstamp) of BTC/USD, which is still in place and may provide us the next move.
On the upside, the most important resistance is at the 61.8% Fib retracement level of the last drop from the $665 low to $645 low. If the bulls manage to break it, then there is a real chance of BTC/USD gaining pace and trading higher.
On the other hand, if the BTC bears have to take control, then they need two things. First, they need to close the price below the 100 hourly SMA. Second, they need to break the expanding triangle support trend line.
I think as long as the price is above the triangle support area, there is a possibility of it trading higher. A retest of the $665 level is very likely if the price breaks higher after the current consolidation pattern.
The hourly is above the 50 level, calling for bullish signs and might help BTC in moving higher.
Chart Source – TradingView.com and data feed by Bitstamp