Bitcoin Price Analysis: BTC/USD Following Support
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.
Chart Source – TradingView.com and data feed by Bitstamp