Bitcoin Price Analysis: BTC/USD Eyeing Further Gains

Bitcoin Price Analysis

Bitcoin price continued to gain traction versus the US dollar, and it looks like the BTC/USD pair is set for a new weekly high in the near term.

This past week’s highlighted bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD acted as a perfect buy area and produced a bounce in the pair.

Bitcoin Price Support

The BTC to USD was in an uptrend as highlighted in this past week analysis. The BTC/USD pair was seen trading slowly and steadily higher above the $600 mark. There was a nice upside move with a break of a bearish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD.

The price traded as high $614.29, and then started a correction. The price already moved below the 38.2% Fib retracement level of the last wave from the $596 low to $514 high. However, the downside was limited, as there were a couple of important support levels on the downside.

First, this past week’s highlighted bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD acted as a barrier for sellers. Moreover, the 50% Fib retracement level of the last wave from the $596 low to $514 high acted as a support.

Both together stopped the downside move and prevented further losses. The price is now back above the 100 hourly simple moving average, which is currently acting as a buying area.

I think one may consider buying as long as the price is above the 100 hourly simple moving average and the highlighted trend line support. The hourly RSI is also above the 50 level, which is a positive sign and may help the BTC bulls to gain traction moving ahead may be above $615.

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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