Bitcoin Price Analysis: BTC/USD Trend Line Support
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.
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.