Bitcoin Price Analysis: BTC/USD Higher As Forecasted

Bitcoin Price Analysis

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.

Happy Trading!

Chart Source – TradingView.com and data feed by Bitstamp

Aayush Jindal

Aayush has spent over EIGHT years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets.

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