Bitcoin Price Analysis: Can BTC/USD Hold This?

Bitcoin Price Analysis BTC

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.

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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