Bitcoin Price Analysis: BTC/USD Sighting Upsides
Bitcoin price is trading a tiny range versus the US Dollar, but the overall bias remains positive for the BTC/USD pair as it remains supported.
This week’s highlighted important bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD is still active on the downside to act as a barrier for sellers.
Bitcoin Price Range Pattern
The BTC to USD after making a short-term top at $607.40 started to correct lower. I already highlighted yesterday a move below the 23.6% Fib retracement level of the last wave from the $592 low to $507.40 high.
The price is now trading in a range and preparing for the next move. It looks like a consolidation pattern before the price may break. My yesterday’s view that the price remains supported on the downside is still valid.
The most important point to note is the fact that this week’s highlighted important bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD is still active. It may act as a major support area if the price moves down from the current levels.
The 50% Fib retracement level of the last wave from the $592 low to $507.40 high is also aligned with the trend line support. Currently, the BTC sellers are attempting to break the 100 hourly simple moving average.
If they succeed, there is a chance of a test of the trend line support where buyers may appear. I think one may consider buying as long as the highlighted trend line and support is in place. On the upside, a break above $608 may take the price towards the next resistance of $615.
The hourly RSI is currently below the 50 level, but there is hardly any momentum.
Chart Source – TradingView.com and data feed by Bitstamp