Bitcoin Price Analysis: Short-Term Break In BTC/USD

Bitcoin Price Analysis

Bitcoin price slowly and steadily moved higher versus the US Dollar,  and it looks like BTC/USD is setting up for more gains in the near term.

There was a short-term bearish trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD, which was broken during the recent upside move.

Bitcoin Price New High

The BTC to USD stayed in the bullish territory, and currently looks set for more gains in the near term. Yesterday, the price tested the 38.2% Fib retracement level of the last wave from the $592 low to $507.40 high, and gained buyers.

We can even say that the bulls managed to defend yesterday’s highlighted important bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD. The price even traded close to the 50% Fib retracement level of the last wave from the $592 low to $507.40 high.

So, we can say that the price bounced from a major support area. Currently, the price is above the 100 hourly simple moving average, and recently broke a short-term bearish trend line formed on the hourly chart.

All these signs suggest that the price is in the bullish zone, and the bulls may take it further higher in the short term. There was an upside move, taking the price towards the $606, but it stayed below $608.

In my view, there is a high possibility of an upside above the recent high of $608 to create a new high. There are many positive signals, which means the BTC bulls may have an upper hand for a move higher.

The hourly RSI is just around the 50 level, and waiting for buyers to step in, and the MACD is also moving into the bullish area.

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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