Bitcoin Price Analysis: BTC/USD Approaching Support
Bitcoin price climbed as high as $729 against the US Dollar, and it looks like that the BTC/USD pair has started a short-term correction.
This past week’s monster support trend line on the hourly chart (data feed via Bitstamp) of BTC/USD may continue to act as a buy area for the BTC buyers.
Bitcoin Price Buy dips
The BTC to USD traded further higher this past week, and even managed to test the $725 resistance area. There was a new high of $729 formed where the sellers appeared and pushed the price down.
The BTC/USD pair has started correcting lower, and already traded below the 23.6% Fib retracement level of the last wave from the $638 low to $729 high. So, there is a chance of the price extending the current correction.
One most important and negative point to note is the fact that the price is now back below the 100 hourly simple moving average. So, the BTC buyers may struggle in the short term, and may face continuing offers.
However, there are many important support levels on the downside. First, the 50% Fib retracement level of the last wave from the $638 low to $729 high. And, the most crucial one is around this past week’s monster support trend line on the hourly chart (data feed via Bitstamp) of BTC/USD.
The highlighted trend line and support area hold the key and may act as a strong bid zone in the short term. So, if the price corrects further lower, then one may consider buying around the trend line support area.
On the upside, a break above the 100 hourly simple moving average is needed for the price to gain strength once again. The hourly RSI is around the oversold readings, calling for a recovery.
Chart Source – TradingView.com and data feed by Bitstamp