Bitcoin Price Analysis: BTC/USD Following Support

Bitcoin Price Analysis

Bitcoin price stayed in the bullish zone versus the US Dollar, and if the current trend continues it may move further higher.

The price is continuously following a support area in the form of a bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD, which is acting as a buy zone.

Bitcoin Price Buy

BTC after trading towards the $780 level started a correction against the US Dollar and traded as low as $706 where it found bids. The price is once again moving higher, and trading with a positive tone.

There is a bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD, which is acting as a support and pushing the price higher. Moreover, the trend line is just above the 100 hourly simple moving average, which is also acting as a hurdle for a downside move.

As long as the price is above the trend line and support area, there is a chance of BTC trading higher and moving towards the last swing high of $780.

On the upside, an initial resistance is around the 76.4% Fib retracement level of the last drop from the $778 high to $706 low. A break above it could push the price towards the 88.6% Fib retracement level of the same wave.

On the downside, the trend line and support area holds the key. A break and close below the trend line and the 100 hourly simple moving average may change the trend for BTC in the short term. In that situation, a test of the last swing low of $706 might be possible.

I think buying remains a good idea as long as the price is above the trend line and the 100 hourly simple moving average.

Happy Trading!

Chart Source – TradingView.com and data feed by Bitstamp

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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