Bitcoin Price Analysis: BTC/USD Poised For Gains
Bitcoin price started to move higher against the US Dollar this past week and posted good gains, as the BTC/USD pair traded above the $675 level.
There is a bullish trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD, which is currently acting as a support area toy the BTC buyers.
Bitcoin Price Buy
This past week I mentioned that there is a chance that the BTC may gain bids against the USD and trade higher. It did happen as there was an upside move in the BTC/USD pair, which took it above the $670-5 resistance levels. You can also read our analysis published on Bitcoin Bragger.
The price even closed above two important resistance areas. First, the 100 hourly simple moving average, and the second one was the 50% Fib retracement level of the drop from the $678 high to $650 low.
The price recently traded as high as $684 from where it started a minor correction. The BTC/USD pair traded lower, and tested the 38.2% Fib retracement level of the last wave from the $658 low to $684 high.
The most important point is that there is a bullish trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD. It acted as a support earlier, and may continue to provide bids if the price moves down from the current levels. It also coincides with the 50% Fib retracement level of the last wave from the $658 low to $684 high.
I think one may consider buying dips as long as the price is above the highlighted trend line and support area. The hourly RSI is above the 50 level, which is a good sign for the people looking to buy BTC. However, traders need not to get aggressive and place a stop below the trend line support.
Chart Source – TradingView.com and data feed by Bitstamp