Bitcoin Price Analysis: BTC/USD Upside Break
Bitcoin price recovered after trading as low as $605 against the US dollar, and the BTC/USD pair currently looks set for more gains in the short term.
There was a new contracting triangle pattern formed on the hourly chart (data feed via Bitstamp) of BTC/USD, which was cleared by the bulls to ignite an upside rally.
Bitcoin Price Buy
BTC was under pressure this past week, as it traded down towards the $600 handle against the US Dollar. However, later it managed to find buyers and started recovering.
There was a nice upside move, as the price moved higher by more than $50 during the past 2-3 days. As mentioned, there was a new contracting triangle pattern formed on the hourly chart (data feed via Bitstamp) of BTC/USD. It was broken during the recent upside move, which is a positive sign for the people looking to buy BTC.
Another important point to note is the fact that the price also settled above the 100 hourly simple moving average. Moreover, the 61.8% Fib retracement level of the last drop from the $680 high to $605 low was also cleared.
As long as the price is above the 100 hourly SMA, there is a chance of it gaining pace further in the short term. A break above the 76.4% Fib retracement level of the last drop from the $680 high to $605 low could take the price towards the last swing high of $680.
On the downside, we must keep a close eye on the 100 hourly SMA as a support area. Only a break below it could ignite a correction in BTC/USD.
The hourly RSI is above the 50 level, calling for more upsides in bitcoin price. Even the hourly MACD is signaling more gains.
Chart Source – TradingView.com and data feed by Bitstamp