Bitcoin Price Analysis: BTC/USD Buy Again?
Bitcoin price extended its upside move against the US dollar, and it looks like the BTC/USD pair may also test the $700 handle in the short term.
Yesterday’s highlighted bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD is still intact, and acting as a major support area on the downside.
Bitcoin Price Continuous Buying
The BTC to USD continued to gain traction, and every minor dip in the price was seen as a buying opportunity. I suggested buying BTC throughout this week, and it worked very well. I hope some of you managed to gain.
The BTC/USD pair recently traded as high as $685, and it looks like it may correct a few points in the short term. An initial support on the downside can be around the 23.6% Fib retracement level of the last wave from the $642 low to $685 high.
However, if the correction extends and the price dips further, then there are many important barriers for sellers on the downside. The most important one is around the highlighted bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD.
The same trend line acted as a support area on many occasions, and currently coinciding with the 38.2% Fib retracement level of the last wave from the $642 low to $685 high. Another important point is the fact that the same trend line is positioned with the 100 hourly simple moving average.
So, if the price corrects lower from the current levels, then one may consider buying with a stop below the 100 hourly SMA or the $660 support. The hourly RSI is currently moving lower, which is a signal of a correction in the pair in the short term.
Chart Source – TradingView.com and data feed by Bitstamp