Bitcoin Price Analysis: BTC/USD Remains Above Support
Bitcoin price stayed above the $600 support area versus the US dollar, and there was a bounce noted in the BTC/USD pair as well from the support.
Yesterday’s highlighted short-term bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD acted as a support and pushed prices higher.
Bitcoin Price Trend Line Support
The BTC to USD traded a few points lower yesterday, but the best part was the fact that the price remained supported on the downside. There was a test of yesterday’s highlighted short-term bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD.
The price tested the trend line support and bounced, which was a positive sign. There was a nice upside move above the 38.2% Fib retracement level of the last drop from the $614 high to $605 low. However, the upside was limited.
There were sellers around the $612 level, as it was coinciding with the 76.4% Fib retracement level of the last drop from the $614 high to $605 low. The price was above the 100 hourly simple moving average for some time.
However, the sellers managed to push the price back below the 100 hourly simple moving average. It looks like the price may again test the same trend line support. It would be interesting to see whether the bulls may be able to defend the downside move or not.
A break below it may call for a change in the trend, and if there is a close below $600, there can be additional losses. However, as long as the price is above the trend line support, it may bounce once again.
The hourly RSI has moved below 50 level, which is a negative sign in the short term.
Chart Source – TradingView.com and data feed by Bitstamp