Bitcoin Price Analysis: BTC/USD Testing Crucial Support

Bitcoin Price Analysis BTC USD

Bitcoin price popped higher above $1210 against the US Dollar, and now BTC/USD is testing a major support area around $1206.

There is a crucial bullish trend line with support at $1205 formed on the hourly chart of BTC/USD (data feed via Poloniex), which may act as a pivot zone in the near term.

Bitcoin Price Trend Line Support

There were good gains in BTC to USD recently, as the price moved above the $1180 and $1200 resistance levels. There was a new weekly high formed at $1227 from where the price started a correction.

The price has already moved below the 23.6% Fib retracement level of the last wave from the $1175 low to $1227 high. However, the price is now trading near a major support area which is just above $1200.

It coincides with a crucial bullish trend line with support at $1205 formed on the hourly chart of BTC/USD (data feed via Poloniex). Moreover, the 38.2% Fib retracement level of the last wave from the $1175 low to $1227 high is also around the same trend line support at $1206.

However, I think the more important support is just below the trend line at $1199. The 100 hourly simple moving average is positioned along with the 50% Fib retracement level of the last wave from the $1175 low to $1227 high at $1199.

So, we can say there are many supports formed just around $1200, and the price is currently trading near it. As long as the price is above $1200 or $1199, it may bounce back in the near term. A downside break if happens could push the price towards the next important support at $1180.

The hourly RSI for BTC/USD (data feed via Poloniex) is currently below 50 level, and struggling.

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.

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