Bitcoin Price Analysis: BTC/USD Trend Line Support

Bitcoin Price Analysis

Bitcoin price mostly trading in range pattern with swing moves towards downside and upside both. BTC/USD after trading as high as $452 moved down, and closed below an important support area of the 100 hourly simple moving average.

However, there is a monster bullish trend line formed on the hourly chart of the BTC to USD (data feed via Bitstamp), which is acting as a hurdle for sellers. There were many attempts by the bears to break the highlighted trend line and support area, but they failed (as can be seen in the chart attached).

Bitcoin Price Can Break Trend Line?

Bitcoin price tested the 50% Fib retracement level of the last wave from the $438 low to $452 high, which acted as a support area and prevented a downside move. BTC/USD is currently making an attempt to move higher, but it is facing sellers near the 100 hourly SMA.

So, the price is stuck between two important spots. On the upside, the 100 SMA is an important resistance area, and on the downside, the highlighted trend line and support area holds the key.

Bitcoin Price Analysis

A break on the either side may call for the next move. So, if you are looking to trade BTC, then I think you should wait for a break before entering.

A break above the 100 SMA may take the price back towards the last high of $452, and on the downside, a break of the trend line support could take the price towards $438.

The hourly RSI is showing a few positive signs, which means the BTC bulls are making an attempt to take the price higher. Let us wait and see whether they can succeed or not moving ahead.

Happy Trading!

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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2 Responses

  1. May 5, 2016

    […] slope path along with a bearish trend line on the hourly chart. The price recently tested the 61.8% Fib retracement level of the last move up from the 0.01869BTC to 0.0233BTC, and found […]

  2. May 9, 2016

    […] further downside may take the price towards the most important support of the bullish trend line, which is also near the 50% Fib retracement level of the last leg from the $439 low to $463 […]

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