SPONSORED ARTICLE: Tech Analysis articles are sponsored by SimpleFx - “Keep it simple!”, SimpleFX is a robust online trading provider, offering trading with Forex CFDs on Bitcoins, Litecoins, indices, precious metals and energy. Offers and trading conditions simple and transparent.
- Bitcoin price after trading near the $450 level found sellers and started to move down.
- There is a bullish trend line formed on the 4-hours chart (data feed from Bitstamp), which may be seen as a buy zone in the near term.
- On the upside, the $450 is a major resistance area, which if broken could take the price higher.
Bitcoin price is showing a lot of positive signs. As long as it is above the 100 simple moving average (H4 chart) more gains are likely.
Bitcoin Price- Continue Buying?
Bitcoin price as mentioned found sellers near a major resistance area of $450 and corrected lower. However, there is a bullish trend line formed on the 4-hours chart (data feed from Bitstamp), which acted as a support and prevented any further losses. The price is now attempting to recover in the near term, and may trade higher moving ahead.
It is currently trading near the 61.8% Fib retracement level of the last drop from the $448 high to $404 low. If buyers manage to take it above the stated fib level, then more gains are possible. The next hurdle on the upside could be around the 88.6% Fib retracement level of the last drop from the $448 high to $404 low.
On the downside, one must keep following the highlighted trend line and support area. A break below it may put a lot of pressure on the bulls, and could take the price towards the 100 simple moving average (H4 chart). The most important support on the downside is around the $400 handle.
Looking at the technical indicators:
4-hours MACD – The MACD is in the bullish slope, which may act as a catalyst for an upside move.
4-hours RSI (Relative Strength Index) – The hourly RSI is above the 50 level, which is a positive sign.
Intraday Support Level – $420
Intraday Resistance Level – $445
Charts from Bitstamp; hosted by Trading View
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.