Bitcoin Price Analysis: BTC/USD Heading Towards Break
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.
Chart Source – TradingView.com and data feed by Bitstamp