Bitcoin Price Analysis: BTC/USD Testing Crucial Support
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.
Chart Source – TradingView.com and data feed by Poloniex