Bitcoin Price Analysis: BTC/USD Upside Surge; Buying Worked
Bitcoin price finally surged higher and my presented idea to buy against the US dollar worked, as the BTC/USD pair posted a new weekly high above $620.
This week’s highlighted bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD worked like a perfect buy area and pushed the price higher.
Bitcoin Price Correction
The BTC to USD enjoyed a nasty upside move towards $640, and during the ride it broke a couple of important resistance levels. First, it is important to point out that the price broke the $618 resistance area and traded as high as $640.
Another critical point is the fact that this week’s highlighted bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD provided support and pushed the price higher. My buying dips idea worked perfectly and lifted the market sentiment in favor of Bitcoin buyers.
The price also during the upside move broke a contracting triangle pattern on the hourly chart. After making a new high, the price is now correcting lower. It is heading towards the 23.6% Fib retracement level of the last wave from the $612 low to $640 high.
However, there is a chance of an extension of the current wave. In that situation, the 50% Fib retracement level of the last wave from the $612 low to $640 high may also be tested. In both the cases, the price remains supported on the downside. I will stick to my view of buying dips in the BTC as long as the price is above the $620 level.
It was a resistance earlier and may now act as a support. The hourly RSI is well above the 50 level, but signaling a correction in the near term.
Chart Source – TradingView.com and data feed by Bitstamp