Bitcoin Price Analysis: BTC/USD Remains Supported At 100 SMA

Bitcoin Price Analysis

Bitcoin price remained in the positive zone versus the US Dollar, and my yesterday’s idea of buying dips in the BTC/USD pair is still in play.

Moreover, yesterday’s highlighted important bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD is still intact and acting as a support area.

Bitcoin Price Support

The BTC to USD remained supported and buyers were in control. I mentioned in yesterday’s post that buying may be considered. I think the presented idea is doing well, as BTC is getting bids across the board.

The most important aspect to note is the BTC/USD pair is above a couple of important support areas. First, the 100 hourly simple moving average is acting as a strong support on the downside.

Second, my yesterday’s highlighted important bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD is acting as a barrier for the sellers. Although the price is below the 23.6% Fib retracement level of the last wave from the $592 low to $507.40 high, it remains supported.

We must note, that the trend line support is also aligned with the 50% Fib retracement level of the last wave from the $592 low to $507.40 high. So, it represents a monster support area for Bitcoin buyers.

I feel that as long as the price is above the 100 hourly simple moving average it may soon bounce and break the recent high of $608. The next stop in that case would be around the $615 where sellers may appear to defend the upside move.

If you are looking to enter a buy trade, then a stop should be placed below the highlighted trend line and support. The hourly RSI is above the 50 level, which is nice.

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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