Bitcoin Price Analysis: 100 SMA As Support For BTC/USD

Bitcoin Price Analysis

Bitcoin price after trading a few points higher against the US dollar found sellers, and the BTC/USD pair moved below an important support area.

Yesterday’s highlighted bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD was broken during the downside move.

Bitcoin Price Support

Yesterday, there were a few swing moves in the BTC versus the US Dollar, as the price traded close to the last swing high of $684, but failed to retain the bullish bias. It started to move down, and also broke a support area during the drift.

The most important point is that the bears managed to break yesterday’s highlighted bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD.

However, the downside was stalled around two crucial junctions. First, the 100 hourly simple moving average, which acted as a barrier. Second, the 50% Fib retracement level of the wave from the $655 low to $684 high.

The pair is currently bids around the $670-665 levels, but we cannot discard the fact that the price moved below a major support area.

I think as long as the price is above the 100 hourly SMA, there is a chance of a move up in the short term. In that situation, the broken trend line may act as a resistance zone for the price.

On the downside a close below the 100 hourly SMA might take the price towards the 76.4% Fib retracement level of the wave from the $655 low to $684 high. In my view selling remains a preferred option as long as the price is below the $685 levels.

The hourly RSI has moved below the 50 level, which can be seen as a bearish sign in the short term.

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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1 Response

  1. July 20, 2016

    […] Bitcoin price moved a few points down against the US Dollar and tested the $668 level where it found the 100 hourly simple moving average as a support that […]

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