Bitcoin Price Analysis: BTC/USD Trend Line Support Played Well
Bitcoin price managed to register gains vs the US Dollar, as BTC/USD climbed above the $450 resistance area. This past week, I highlighted a major bullish trend line on the hourly chart of the BTC to USD (data feed via Bitstamp), and was hoping it to act as a support area.
The trend line support area played well and pushed the price higher. BTC/USD traded as high as $463 where it found sellers and started to correct lower.
Bitcoin price buy dips?
Bitcoin price is currently consolidating in a range, and may be preparing for the next move. On the downside, there are many support areas. An immediate support is around the 38.2% Fib retracement level of the last leg from the $439 low to $463 high, which is also coinciding with the 100 hourly simple moving average.
Any 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 high.
Overall, any dips from the current levels may find buyers on the downside. One may consider buying dips as long as BTC/USD is above the trend line and support area.
On the upside, an initial resistance is around the $460 level, followed by the recent swing high of $463. A break above it could take the price towards the $470 resistance area.
The hourly RSI is just around the 50 level, and waiting for a catalyst for the next move. The hourly MACD is also flat, which is a sign of range trading moves. All in all the price may trade a few points down after consolidation and then attempt to trade higher once again.
Chart Source – TradingView.com and data feed by Bitstamp