Bitcoin Price Analysis: Can BTC/USD Clear $1600?

Bitcoin price surged higher above the $1550 resistance area against the US Dollar, and now BTC/USD is looking to extend gains above $1580 in the near term.

There was a bearish trend line with resistance at $1540 formed on the hourly chart of BTC/USD (data feed via Kraken), which was broken recently by the bulls.

Bitcoin Price Resistance

The BTC to USD managed to gain pace this past week and moved above the $1500 level. The upside move was such that the price was even able to trade above $1550 and $1580, and almost tested the $1600 level.

There was a nice upside break above the 1.236 extension of the last decline from the $1480 high to $1320 low. It cleared the way for an upside move.

The price recently dipped towards the $1480 level, which acted as a strong support and pushed the price back up. During the upside, the price broke a bearish trend line with resistance at $1540 formed on the hourly chart of BTC/USD.

It traded close to the $1590 for a swing high of $1588, and currently attempting a minor correction. On the downside, an initial support is around the 23.6% Fib retracement level of the last wave from the $1420 low to $1588 high.

Moreover, the same broken trend line is at $1540 along with the 100 hourly simple moving average. So, buyers are likely to appear around $1540. If the BTC buyers fail to hold $1540, then a move towards the 50% Fib retracement level of the last wave from the $1420 low to $1588 high at $1505 is possible.

The overall trend is bullish as long as the price is above $1500-1480. The hourly RSI for BTC/USD (data feed via Kraken) is well above 65, which is a positive sign.

Happy Trading!

Chart Source – TradingView.com and data feed by Kraken