Bitcoin Price Analysis: Is This Real Break In BTC/USD?
Bitcoin price somehow managed to break higher versus the US Dollar, but the real question here is whether this is a real one in BTC/USD?
This past week’s highlighted tiny range pattern on the hourly chart (data feed via Bitstamp) of BTC/USD was broken during the recent upside move to open the doors for more gains.
Bitcoin Price Support
The BTC to USD was seen trading in a very tiny this past week, but finally there was an upside move. The price broke higher and cleared the range support along with the 23.6% Fib retracement level of the last drop from the $608 high to $592 low.
The price traded as high as $603 where sellers managed to protect any further gains. The stated level also represents the 61.8% Fib retracement level of the last drop from the $608 high to $592 low.
So, we can say that the recent failure was around a major technical level. The price is once again moving lower. However, there is a bullish trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD, which is currently acting as a support area.
The price is also near the 100 hourly simple moving average, which is also acting as a support. I think if the price remains above the trend line support, then there is a real chance of another upside move in the short term.
For the price to gain strength, it needs to close above the $600 level convincingly. If there is a 4-hour close above the stated level, then the BTC buyers may step up the momentum. The next stop in that case can be at $615. The hourly RSI is just below the 50 level, and waiting for an upside move.
Chart Source – TradingView.com and data feed by Bitstamp