BTC/USD Sighting Further Gains

Bitcoin Price Analysis BTC/USD

Bitcoin price after a minor dip towards $998 against the US Dollar found support, and now it looks like the BTC/USD pair is attempting to retest $1040.

There was a bearish trend line at $1020 on the hourly chart of BTC/USD (data feed via Poloniex), which was broken during the recent upside move.

Bitcoin Price Upside Break

We recently saw a rise in the BTC to USD towards $1040, before the price started a correction. The price moved down, broke the $1000 support and traded as low as $998. There was a low formed at $998, and later the price started moving back higher.

An important point to note was the fact that the price failed to close successfully below the 100 hourly simple moving average at $1000, which resulted in forming a support. The price is gaining strength, and already moved above the $1010 resistance.

During the upside, there was a break of a bearish trend line at $1020 on the hourly chart of BTC/USD (data feed via Poloniex). Moreover, the price also broke the 50% Fib retracement level of the last drop from the $1040 high to $998 low. So, it looks like the BTC buyers are back in action, and may attempt to take the price back towards $1040.

An intermediate resistance is seen at 76.4% Fib retracement level of the last drop from the $1040 high to $998 low at $1030. A break above this could open the doors for a move towards $1040.

Any further strength could take the price towards the 1.236 extension of the last drop from the $1040 high to $998 low at $1049.

Overall, the price is trading with a positive tone, and the hourly RSI for BTC/USD (data feed via Poloniex) is also well above the 50 level.

Happy Trading!

Chart Source – TradingView.com and data feed by┬áPoloniex

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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