Bitcoin Price Analysis: Can BTC/USD Clear $1600?

Bitcoin Price Analysis BTC USD

Bitcoin price surged higher above the $1550 resistance area against the US Dollar, and now BTC/USD is looking to extend gains above $1580 in the near term.

There was a bearish trend line with resistance at $1540 formed on the hourly chart of BTC/USD (data feed via Kraken), which was broken recently by the bulls.

Bitcoin Price Resistance

The BTC to USD managed to gain pace this past week and moved above the $1500 level. The upside move was such that the price was even able to trade above $1550 and $1580, and almost tested the $1600 level.

There was a nice upside break above the 1.236 extension of the last decline from the $1480 high to $1320 low. It cleared the way for an upside move.

The price recently dipped towards the $1480 level, which acted as a strong support and pushed the price back up. During the upside, the price broke a bearish trend line with resistance at $1540 formed on the hourly chart of BTC/USD.

It traded close to the $1590 for a swing high of $1588, and currently attempting a minor correction. On the downside, an initial support is around the 23.6% Fib retracement level of the last wave from the $1420 low to $1588 high.

Moreover, the same broken trend line is at $1540 along with the 100 hourly simple moving average. So, buyers are likely to appear around $1540. If the BTC buyers fail to hold $1540, then a move towards the 50% Fib retracement level of the last wave from the $1420 low to $1588 high at $1505 is possible.

The overall trend is bullish as long as the price is above $1500-1480. The hourly RSI for BTC/USD (data feed via Kraken) is well above 65, which is a positive sign.

Happy Trading!

Chart Source – TradingView.com and data feed by┬áKraken

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.

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *

Herro