Bitcoin Price Analysis: BTC/USD To Break Higher?
Bitcoin price remained above the $1205 support area against the US Dollar, and now BTC/USD is looking for the next move.
There is a major contracting triangle pattern with support at $1205 formed on the hourly chart of BTC/USD (data feed via Poloniex), which may act as a buy zone in the short term.
Bitcoin Price Support and Resistance
The BTC to USD remained in a decent uptrend, as there was no major break and close below $1200. The price remained support and was seen trading with support above $1202 and $1205. Earlier, there was a dip from $1240 to well below $1200.
There was even a close below the $1200 handle once, but the price managed to gain bids near a major support area at $1160. After trading as low as $1160, the price found support and started an upside move.
There was a break above the 38.2% Fib retracement level of the last decline from the $1242 high to $1160 low. However, the upside failed near the $1216. The stated level along with the 61.8% Fib retracement level of the last decline from the $1242 high to $1160 low acted as a resistance and prevented gains.
However, the price is currently above the 100 hourly simple moving average at $1208, which is a positive sign. Moreover, there is a major contracting triangle pattern with support at $1205 formed on the hourly chart of BTC/USD.
The triangle support at $1205 may act as a major pivot zone in the near term. We can even say that the $1200 level is a major support. As long as the price is above it, there is a chance of it breaking the triangle resistance above $1220 for more gains.
The hourly RSI for BTC/USD (data feed via Poloniex) is currently above 50 level.
Chart Source – TradingView.com and data feed by Poloniex