Bitcoin Price Analysis: Can BTC/USD Hold This?
Bitcoin price climbed above $1180 against the US Dollar, but now BTC/USD is struggling to hold a major support area at $1185-80.
There is a crucial bullish trend line with support at $1180 formed on the hourly chart of BTC/USD (data feed via Poloniex), which might play a key role moving ahead.
Bitcoin Price Support
There was a nice upside move in the BTC to USD, as the price settled above $1150. The price even traded for some time above the $1200 handle, but later moved down.
At the moment, the price is consolidating below the $1200 handle, and trading above the $1180 support.
On the downside, there is a crucial support at $1185 and $1180, as it coincides with a crucial bullish trend line with support at $1180 on the hourly chart of BTC/USD (data feed via Poloniex).
The pair after a decline below the 50% Fib retracement level of the last drop from the $1225 high to $1135 low recovered well. However, it needs to remain above the trend line support at $1180.
The most important point is the fact that the trend line also coincides with the 100 hourly simple moving average at $1182. So, it is clearly a major support area.
The price has already moved above the 61.8% Fib retracement level of the last drop from the $1225 high to $1135 low, which is a positive sign. It just needs to clear the $1200 handle once more in order to gain traction.
On the downside, if there is a close below the 100 hourly simple moving average or $1180, there can be more declines in the near term.
The hourly RSI for BTC/USD (data feed via Poloniex) is struggling to move back above the 50 level, which is a concern.
Chart Source – TradingView.com and data feed by Poloniex