Bitcoin Price Analysis: BTC/USD Remains Supported At 100 SMA
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.
Chart Source – TradingView.com and data feed by Bitstamp