Bitcoin Price Analysis: BTC/USD Faces Trend Line Resistance
Bitcoin price after a thunderous collapse against the US Dollar found buyers at $465 and recovered. It is now facing a major resistance area on the upside.
The BTC bulls are currently facing offers near yesterday’s highlighted resistance trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD.
Bitcoin Price Hurdle
The BTC versus the USD managed to recover during the past couple of sessions, and managed to trade above the $550 level. There was a good buying interest noted for Bitcoin, as the bulls later managed to digest the hack story.
During the upside move, the BTC/USD pair cleared the 50% Fib retracement level of the last drop from the $656 high to $465 low. However, it is currently facing a major resistance near yesterday’s highlighted bearish trend line formed on the hourly chart (data feed via Bitstamp).
The price is already rejected once around the trend line resistance and it looks like it may continue to struggle. Actually, the 61.8% Fib retracement level of the last drop from the $656 high to $465 low is also playing on the minds of the bulls, which is stalling the upside move.
It would be interesting to see how the pair trades if there is a break above the trend line. If there is a break, the 100 hourly simple moving average may be tested in the near term. Any further gains should be limited, as the $600 level may now act as a major resistance area for the price moving ahead.
On the downside, the $550 level can now act as a support. The hourly RSI is above the 50 level at this point, which is a positive sign, but the bulls need to be careful going forward.
Chart Source – TradingView.com and data feed by Bitstamp