Bitcoin Price Analysis: Channel Pattern For BTC/USD

Bitcoin Price Analysis

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.

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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2 Responses

  1. July 21, 2016

    […] ago. He further states that I want to thank all of the people, who wrote, sent books, magazines, money and their support. I have no words to describe my affection and appreciation to thank all of you. […]

  2. July 21, 2016

    […] I highlighted a couple of important patterns and support levels, including a descending channel pattern on the hourly chart (data feed via Bitstamp) of BTC/USD and […]

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