Bitcoin Price Analysis: BTC/USD Forming Bottom?
Bitcoin price dipped once again versus the US Dollar, but found support near the last low of $556. It looks like BTC/USD is forming a short-term bottom.
Yesterday’s highlighted bearish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD is intact, and may act as a resistance on the upside for buyers.
Bitcoin Price Buy
Yesterday. I was looking for more declines in the BTC versus the US dollar. The BTC/USD pair did move down, but found support near the last swing low of $556. The bulls managed to defend the stated level and currently pushing the price highesr.
The price has climbed above the 23.6% Fib retracement level of the last decline from the $590 high to $556 low, which is a positive sign. However, we cannot ignore a major resistance area, as yesterday’s highlighted bearish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD is intact.
The resistance trend line is also aligned with the 50% Fib retracement level of the last decline from the $590 high to $556 low. So, the trend line resistance area is a major hurdle for buyers on the upside, and may prevent an upside move.
On the flip side, there is a solid bottom forming on the downside at $555. There is even a chance of a double bottom pattern around the stated level, as there were two rejections around it, and the price moved higher.
If the recent double bottom pattern is correct, then there is a high probability that bitcoin price may trade higher. It can even break the highlighted trend line and resistance area in that case. The hourly RSI has moved above the 50 level, which is a positive sign for the BTC bulls.
Chart Source – TradingView.com and data feed by Bitstamp