Bitcoin Price Analysis: Trend Proved Worth For BTC/USD
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.
Chart Source – TradingView.com and data feed by Bitstamp