Bitcoin Price Analysis: BTC/USD To Surge Higher?
Bitcoin price maintained its bullish bias above the $1240 support area against the US Dollar, and now BTC/USD is looking to extend gains.
There was a crucial contracting triangle pattern with resistance at $1245 on the hourly chart of BTC/USD (data feed via Kraken), which was broken to ignite an upside move above $1250.
Bitcoin Price Upside Move
The BTC to USD remained elevated above the $1220 support, and traded above the $1240 level. There was a nice upside wave before the price settled above the $1240 level.
The price first broke the 50% Fib retracement level of the last decline from the $1255 high to $1212 low in order to gain pace. Then, there was a break above a crucial contracting triangle pattern with resistance at $1245 on the hourly chart of BTC/USD.
It resulted in an upside push above $1244 and the 76.4% Fib retracement level of the last decline from the $1255 high to $1212 low. Now, the price is heading higher and remains well above the 100 hourly simple moving average at $1240.
If the price corrects lower, the broken triangle resistance at $1244 may now act as a support and prevent losses. Moreover, the 100 hourly simple moving average at $1242 might also act as a barrier for sellers on the downside.
If the current momentum stays intact, there is a chance of a move towards the 1.236 extension of the last decline from the $1255 high to $1212 low at $1264.
If the BTC buyers take control, there is even a chance of it moving towards the $1280 level in the near term.
The hourly RSI for BTC/USD (data feed via Kraken) is currently well above 50 level, and signaling positive signs and gains.
Chart Source – TradingView.com and data feed by Kraken