Bitcoin Price Analysis: BTC/USD Remains Supported

Bitcoin Price Analysis BTC USD

Bitcoin price somehow managed to stay above the $1230 support against the US Dollar, and now BTC/USD may gain further.

There is a crucial ascending channel pattern formed with support at $1265 on the hourly chart of BTC/USD (data feed via Poloniex), which can be seen as a buy zone.

Bitcoin Price Buy Dips

We saw a minor dip in the BTC to USD, as the price traded towards the $1240 and $1230 levels. However, there was a major support at $1230, which prevented the downside move.

The same $1230 level was a resistance earlier, and now acted as a support. It produced a bounce, and pushed the price higher. The upside move was such that the price moved back above the $1260 level.

Moreover, the price is now back trading above the 100 hourly simple moving average at $1270. All in all, there are positive signs, as the price is well positioned above $1260.

To compile a bullish trend, there is a crucial ascending channel pattern formed with support at $1265 on the hourly chart of BTC/USD (data feed via Poloniex).

It can continue to act as a major support area on the downside near $1265 and $1260. An initial support is seen at 23.6% Fib retracement level of the last wave from the $1230 low to $1285 high.

However, the most important support is around the ascending channel lower trend line at $1265. It also coincides with the 38.2% Fib retracement level of the last wave from the $1230 low to $1285 high.

So, any corrections from the current levels might find support near $1265, $1260, and the highlighted channel.

The hourly RSI for BTC/USD (data feed via Poloniex) is well above the 50 level, suggesting buy dips scenario.

Happy Trading!

Chart Source – TradingView.com and data feed by Poloniex

Aayush Jindal

Aayush has spent over EIGHT years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets.

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *

Herro