Bitcoin Price Analysis: BTC/USD Trend Line Resistance
Bitcoin price after dropping to the $565 support area found buyers versus the US Dollar, and now the BTC/USD pair is attempting to recover.
There is a critical bearish trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD, which may act as a resistance on the upside for the pair.
Bitcoin Price Resistance
The BTC to USD suffered losses this past week as the price broke the $580 support area to trade towards $565. There was a nice downside move, but later the buyers managed to protect any further declines and pushed the price higher.
The price is currently moving higher and already above the 23.6% Fib retracement level of the last drop from the $583 high to $564 low. The price is currently trading near the 100 hourly simple moving average, and attempting to close above it.
A close above the 100 hourly SMA would be a positive sign. Moreover, a close above the 50% Fib retracement level of the last drop from the $583 high to $564 low is needed for more gains in the short term.
However, the most important resistance on the upside is around a critical bearish trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD. It acted as a resistance on many occasions earlier and may continue to stop gains.
A failure to break the highlighted trend line and resistance area may trigger another downside move. However, the current trend is positive, and no doubt there is at least a chance of a move towards the trend line resistance.
We will then need to see the BTC seller’s reaction in that case. If they fail to defend the trend line, more gains are possible moving ahead.
Chart Source – TradingView.com and data feed by Bitstamp