Bitcoin Price Analysis: BTC/USD Buying Worked
Bitcoin price continued to extend its upside move against the US dollar, and it looks like there are chances of more gains in the BTC/USD pair.
Yesterday’s highlighted bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD worked once again, and the idea of buying dips was also correct.
Bitcoin Price Buy Dips
The BTC to USD climbed further higher, and every time there was a minor dip the buyers appeared and pushed the price higher. There was a minor dip yesterday, but the 23.6% Fib retracement level of the last wave from the $628 low to $657 high acted as a perfect support area and protected any further losses.
Moreover, the yesterday’s highlighted bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD also acted as support and provided bids. As a result, there was a sharp upside move. The price during the ride broke a couple of important resistance area.
There was a break above the last high of $657, and the $675 resistance to create a new weekly high of $680. It looks like the price may continue to trade higher, and any dips from the current levels may still be considered as a buying opportunity.
An initial support on the downside can be around the 23.6% Fib retracement level of the last wave from the $640 low to $680 high. Any further losses may take the price towards the 50% Fib level of the same wave where the highlighted bullish trend line is positioned.
Moreover, the 100 hourly simple moving average is also around the same trend line to act as a support area. The hourly RSI is currently around the overbought levels, so there is a chance of a minor correction.
Chart Source – TradingView.com and data feed by Bitstamp