Bitcoin Price Analysis: BTC/USD New High As Forecasted
Bitcoin price after a minor dip against the US Dollar, found buyers and jumped higher. The BTC/USD pair also created a new high of $615 just as forecasted.
After the price managed to clear a minor bearish trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD, there were solid gains. Now, there is a crucial support forming on the downside.
Bitcoin Price Surge
The BTC to USD pop higher after completing a minor correction. There was a downside move, taking the price towards the 50% Fib retracement level of the last wave from the $585 low to $608 high. Later, the bulls appeared and pushed the price back higher.
Yesterday, I highlighted a bearish trend line break on the hourly chart (data feed via Bitstamp) of BTC/USD. The break was true, as the price spiked higher and traded as high $615, as forecasted in yesterday’s post.
The price after trading as high as $615 started correcting lower. On the downside, an initial support is around the 23.6% Fib retracement level of the last wave from the $590 low to $615 high. The stated level holds a lot of importance, as there is a bullish trend line positioned around it.
The highlighted trend line and support zone can be seen as a buying area. One may consider buying dips with a stop below it. A break below the trend line support could push the price towards the 50% Fib retracement level of the last wave from the $590 low to $615 high.
The 100 hourly simple moving average can be considered as the next major support after the trend line. The hourly RSI is well above the 50 level, which is good for the BTC bulls in the short term.
Chart Source – TradingView.com and data feed by Bitstamp