Bitcoin Price Analysis: BTC/USD Heading Towards Break

Bitcoin Price Analysis

Bitcoin price after declining towards $594 found support against the US Dollar and recovered. However, can the BTC/USD pair continue to recover moving ahead?

There is a contracting triangle pattern formed on the hourly chart (data feed via Bitstamp) of BTC/USD, which may provide us the next break in the short term.

Bitcoin Price Resistance

The BTC to USD is currently under a recovery mode, and trading a few points above the $606 level. The BTC/USD pair managed to clear the 23.6% Fib retracement level of the last drop from the $626 high to $594 low.

However, the price is finding sellers near $608. There is also a contracting triangle pattern formed on the hourly chart (data feed via Bitstamp) of BTC/USD. It is acting as a resistance for the pair and acting as a hurdle for more gains.

Moreover, the triangle resistance is also coinciding with the Fib retracement level of the last drop from the $626 high to $594 low. The highlighted triangle is contracting and may soon provide us a break in the near term. If there is a break higher, then a move towards the 100 hourly simple moving average is possible.

If there is a break down, then the $600 level may act as a support. A break below it could take the price back towards the last swing low of $594. The hourly MACD is in the bullish zone, which is a positive sign and may help the price gain bids moving ahead. Let us wait for a break to grab the next move in the BTC/USD pair.

The hourly RSI is just around the 50 level. It must hold the stated level if the buyers need to attempt for a break of the triangle resistance zone.

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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