Bitcoin Price Analysis: BTC/USD To Recover Soon?
Bitcoin price after trading lower versus the US Dollar found support around a major area of $565-70 and the BTC/USD pair started to recover.
There is a short-term channel pattern formed on the hourly chart (data feed via Bitstamp) of BTC/USD, which is currently acting as a support area.
Bitcoin Price Support
The BTC to USD climbed higher recently against the US Dollar after a minor correction yesterday. The current market sentiment is positive, and it looks like finding buyers on the downside.
There were a couple of attempts made by the sellers recently to break the $570-65 support area, but they failed. As a result, there was a minor upside move in BTC/USD. AS mentioned, there is a short-term channel pattern formed on the hourly chart (data feed via Bitstamp) of BTC/USD.
The highlighted trend line support is currently acting as a buy zone and helping buyers to stay in control. There was once a close below the 100 hourly simple moving average, but later the price recovered. The price is currently making an attempt to move above the 100 hourly SMA, which may ignite gains in the short term.
On the upside, the 61.8% Fib retracement level of the last drop from the $583 high to $654 low is acting as a resistance. The highlighted channel pattern holds a lot of importance for more gains. As long as the price is following it, there is a chance of further upsides.
On the downside, we can keep an eye on channel support trend line. A break below it could take the pair back towards the last swing low of $564. The hourly RSI is below the 50 level, which is the only negative sign for the BTC bulls moving ahead.
Chart Source – TradingView.com and data feed by Bitstamp