Bitcoin Price Analysis: BTC/USD Higher As Forecasted
Bitcoin price managed to climb higher versus the US Dollar during the past 24 hours as forecasted, and BTC/USD may gain traction further.
Yesterday’s highlighted bearish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD was broken during the upside move, and paved the way for more gains.
Bitcoin Price Buy
Yesterday. I stated that there is a chance of more gains in BTC versus the US dollar. There was a double bottom pattern formed on the hourly chart (data feed via Bitstamp) of BTC/USD, which played well in pushing the price higher.
During the upside move, the price broke a couple of important resistances. First, yesterday’s highlighted bearish trend line on the hourly chart was cleared. Second, the 50% Fib retracement level of the last decline from the $590 high to $556 low was broken.
Both these breaks suggest that the price managed to gain strength and may trade further higher in the near term. There was a new intraday high set at $580 before the price started correcting lower.
The price is currently trading near the 23.6% Fib retracement level of the last wave from the $555 low to $580 high. However, the downside may be limited as the broken trend line may now act as a support area for the pair.
If the pair manages to hold the broken trend line, then there is a chance of an upside move once again. If it fails, then a move towards the 50% Fib retracement level of the last wave from the $555 low to $580 high is also possible.
The hourly RSI is above the 50 level, which is a positive sign and may take the price higher in the near term. However, the price should remain above $565.
Chart Source – TradingView.com and data feed by Bitstamp