Bitcoin Price Analysis: BTC/USD Upside Continuation
Bitcoin price is currently correcting against the US dollar, but the BTC/USD pair remains in an uptrend and may trade higher further in the near term.
There is a new bullish trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD, which is currently acting as a support and protecting losses around $630.
Bitcoin Price Support
The BTC to USD remained in an uptrend, and mostly traded with a positive tone. The price started a correction yesterday and moved below the 23.6% Fib retracement level of the last wave from the $612 low to $640 high.
However, the price managed to find support around a major area. There was a new bullish trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD. It acted as a support along with the $630 level.
The price also found support near the 38.2% Fib retracement level of the last wave from the $612 low to $640 high. BTC/USD is now moving back higher and currently positioned for more gains in the short term. The last two hourly candles are pretty bullish and got generated from the highlighted trend line.
So, the price is likely to extend the current wave and at least test the last swing high of $640. It would be interesting to see whether the price can break the stated level or not. If it does, there is a chance of a move towards the $650 level. It represents a major level, and there is a possibility of sellers appearing to prevent a break.
Overall, I think buying remains a good option, as long as the price is above the $630 support. The hourly RSI is also above the 50 level, which is a good sign.
Chart Source – TradingView.com and data feed by Bitstamp