Bitcoin Price Analysis: BTC/USD Remains Supported
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.
Chart Source – TradingView.com and data feed by Poloniex