Bitcoin Price Analysis: Looking To Buy BTC/USD?
Bitcoin price continued to move higher against the US Dollar, and it looks like it may gain further. Are you considering a buy trade in BTC/USD?
The last highlighted contracting triangle pattern on the hourly chart (data feed via Bitstamp) of BTC/USD played well and pushed the price higher.
Bitcoin Price Buy
This past week, I mentioned that there are chances of more gains in the BTC to USD. I highlighted a breakout pattern on the hourly chart (data feed via Bitstamp) of BTC/USD and was looking for a move higher.
The price moved higher and traded above the $580 resistance area. There was a test of the $600 level where the BTC bulls found offers and the price started to correct lower.
There is currently a bullish trend line formed on the same chart, which may act as a support area if the price continues to move down. The most important point is the fact that the same trend line is positioned around the 100 hourly simple moving average.
So, it looks like the trend line support holds a lot of importance in the short term, and may be considered as a buy area. If you are looking to enter a buy trade, then you can consider it near the trend line with a stop below the 100 hourly SMA.
A break below the 100 hourly SMA may call for further declines and could take the price towards the 38.2% Fib retracement level of the last wave from the $468 low to $598 high.
The hourly RSI is still well above the 50 level, which is a positive sign and may take the price higher. On the upside, the $600 level is a short-term resistance, followed by the $608 level.
Chart Source – TradingView.com and data feed by Bitstamp