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Bitcoin Price Technical Analysis For 03/30/2016 – BTC Breakout Vs USD




Bitcoin price collapsed against the US Dollar, and broke a major support area. Can BTC/USD recover and regain bids moving ahead?
Bitcoin Price Technical Analysis btc vs usd breakout. newsbtc
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Key Points

  • Bitcoin price found offers intraday, and as highlighted in yesterday’s post, the $425 resistance area acted as a perfect barrier for the bulls.
  • BTC/USD broke a crucial support trend line on the hourly chart (data feed from Bitstamp), which ignited sharp losses.
  • The price found support near $408 and currently attempting to regain the bullish bias.

Bitcoin price collapsed against the US Dollar, and broke a major support area. Can BTC/USD recover and regain bids moving ahead?

Bitcoin Price – 100 SMA as Resistance

Bitcoin price attempted to settle above the $425-426 yesterday, but failed to gain traction. I highlighted in yesterday’s post that the stated level is a major resistance area and it is not worth the risk. BTC moved down sharply versus USD, and the worst part was the fact that the price broke a crucial support trend line on the hourly chart (data feed from Bitstamp).

There was a sharp decline once the price closed below the trend line support area, as 100 hourly simple moving average was also positioned near it. The highlighted break may be crucial, as it might give a reason for the bears to take charge and attempt to take the price down once again.

Bitcoin Price Technical Analysis

If BTC/USD corrects higher, then it may find a monster resistance near a confluence area of the broken trend line, 100 hourly SMA and the 50% Fib retracement level of the last drop of the $426 low to $427 low. One may consider selling near the highlighted resistance zone, but only with a tight stop (an hourly close above the 100 SMA). On the downside, $407-405 may continue to act as a short-term support area.

Looking at the technical indicators:

Hourly MACD – The hourly MACD is in the bullish slope, which a signal of a minor upside may be towards the highlighted resistance area.

RSI (Relative Strength Index) – The RSI is well below the 50 levels, suggesting that the price is under a lot of pressure.

Intraday Support Level – $407

Intraday Resistance Level – $418-20

 

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.

Published by

Aayush Jindal

Aayush has spent over seven 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. He is a software engineer by profession, loves blogging and observing financial markets.

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