Bitcoin Price Analysis: Trend Proved Worth For BTC/USD

Bitcoin Price Analysis

Bitcoin price continued to find support and continuously finding bids near the $600 support area versus the US dollar, which is positive for the BTC/USD pair.

Yesterday’s highlighted short-term bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD is still active and prevented the downside move once again.

Bitcoin Price Remains Bid

The BTC to USD faced buyers, as they managed to prevent a downside break every time there is a minor dip in the price. The most important support near $600 continued to act as a buy zone and stopped sellers from taking the price further down.

On the downside, this week’s highlighted short-term bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD is still valid and acting as a support. It also prevented a downside break on a number of occasions, and one of the main reasons why the BTC/USD pair remained supported.

On the upside, the pair remains offered near 50% Fib retracement level of the last drop from the $614 high to $605 low. The BTC sellers are defending any major gains, but at the same time failing to break the $600 level.

The price is again back below the 100 hourly simple moving average, but the momentum is not there. As mentioned yesterday, the 76.4% Fib retracement level of the last drop from the $614 high to $605 low is also a major resistance for more gains.

The price may continue to trade in a range, but at some point of time it may have to give up either below $600 or above $615. The hourly RSI is currently below 50 level, but it is now heading north above the 30 level.

I think it’s best to wait for a break in the short term.

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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