Bitcoin Price Analysis: BTC/USD Trend Line Support
Bitcoin price moved down once again versus the US Dollar, and currently the BTC/USD pair testing an important support on a lower time frame.
This week’s followed major bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD is currently acting as a support and protecting losses.
Bitcoin Price Support
The BTC to USD failed once again around the $585 level and started moving down. The price managed to find support near the 100 hourly simple moving average, which acted as a barrier and protected further losses.
The most important support is this week’s followed major bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD. It along with the 100 hourly simple moving average provided support. Moreover, the 50% Fib retracement level of the last leg from the $569 low to $586 high is also around the same trend line.
In short, the highlighted support area on the chart holds a lot of importance. The price may bounce back if the sellers fail to break it. Only a close below the 100 hourly simple moving average may take the price towards the 76.4%.
If there is a bounce from the current levels or the trend line support, then there is a chance of a move towards the $585 level once again. The stated level is a major resistance on the upside. The BTC buyers failed on many occasions to break it, and it won’t be easy for them to clear it.
Only a break above it would call for further gains and may take the price towards the $600 level. The hourly RSI is currently below the 50 level, which is not a good sign for the BTC bulls in the near term.
Chart Source – TradingView.com and data feed by Bitstamp