Bitcoin Price Analysis: BTC/USD Upside Thrust
Bitcoin price finally moved higher against the US dollar to trade above $640, and the BTC/USD looks like may gain bids on the downside.
There was a bearish trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD, which was broken to pave the way for more gains in the near term.
Bitcoin Price Support
The BTC to USD showed a lot of strength recently, and moved above the $640 level to challenge the $655 level. During the recent upside move, the price broke a couple of important resistance areas.
First, there was a break above a bearish trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD. Second, the price cleared a major hurdle of $640, which ignited an upside move. Third, the price also managed to clear the 100 hourly simple moving average.
All these factors gave the BTC buyers a reason to take the price higher, and above the $650 level. There was a new high at $655, and the price is currently correcting lower. The pair is testing the 38.2% Fib retracement level of the last wave from the $624 low to $655 high.
It may act as a support area in the short term, but the most important one is on the downside near the $640, as the 100 hourly simple moving average is positioned at it. Moreover, the 61.8% Fib retracement level of the last wave from the $624 low to $655 high is also near it.
So, if the price moves down from the current levels, then it is very likely to find buyers on the downside near $640. The hourly RSI is currently below the 50 level, which means the correction may extend towards the $640 area going forward.
Chart Source – TradingView.com and data feed by Bitstamp