Bitcoin Price Analysis: BTC/USD Trend Line Break
Bitcoin price managed to recover versus the US Dollar, and the BTC/USD pair is currently showing a lot of positive signs for the bulls.
Yesterday’s highlighted bearish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD was broken during the recent upside move to encourage buyers to take the price higher.
Bitcoin Price Buy
BTC after declining towards the $540 support area against the US Dollar managed to find buyers and started to move higher. I highlighted a bearish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD in yesterday’s post, which was broken during the upside move.
The trend line break was very crucial to ignite more gains in BTC/USD. It looks like the price is gaining traction, as it also cleared the 38.2% Fib retracement level of the last drop from the $764 high to $539 low.
We need to see how long the price can continue trading higher, as there are still a couple of hurdles on the upside for BTC/USD. Currently, the price is trading near the 50% Fib retracement level of the last drop from the $764 high to $539 low, which is acting as a resistance area.
Moreover, the 100 hourly simple moving average is also positioned above the stated fib level to act as a hurdle for more upsides. As long as the price is below the 100 hourly SMA, there is a chance that BTC may trade or correct lower in the near term.
On the downside, the broken trend line may act as a support area for BTC. I think buying dips can be considered as long as the price stays above the $620-10 support area. A break below it might call for a move back towards the last swing low of $540.
Chart Source – TradingView.com and data feed by Bitstamp