Bitcoin Price Analysis: Channel Pattern For BTC/USD
Bitcoin price continued to stay lower against the US Dollar, but it looks like the BTC/USD pair is forming a support near the 100 hourly simple moving average.
There is a descending channel pattern forming on the hourly chart (data feed via Bitstamp) of BTC/USD, which may provide us the next break in the short term.
Bitcoin Price Break
Yesterday, 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 prevented the downside move.
One more technical level, which is the 50% Fib retracement level of the wave from the $655 low to $684 high was around the stated support area acted as a barrier for the sellers and stalled losses.
The price is currently consolidating and moving inside a descending channel pattern forming on the hourly chart (data feed via Bitstamp) of BTC/USD. The most important point is that the price is above the 100 hourly SMA, which increases the chances of a move higher in the short term.
If the bulls succeed in taking the price above the highlighted channel resistance area, then a move towards the last swing high of $$684 is possible. On the other hand, it they fail, then a move towards the last low of $655 is also possible.
The hourly MACD is in the bullish slope, which is a positive sign and may take the price higher. However, I will keep repeating in this scenario that the 100 hourly SMA holds the key for the BTC versus the USD. As long as the price is above it, BTC/USD may trade higher in the short term.
The hourly RSI has moved above the 50 level, which can be seen as a positive sign.
Chart Source – TradingView.com and data feed by Bitstamp