- Bitcoin price jaw dropped back towards $650 after a solid ride towards the $750 level.
- There is a crucial bullish trend line formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD, which is acting as a support zone.
- The 100 simple moving average is also on the downside, acting as a barrier for sellers.
Bitcoin price after a monstrous ride corrected lower towards $650 against the USD. It looks like the BTC/USD is positioning for another move higher.
Bitcoin Price Buy Dips?
I mentioned in my last weekly analysis that Bitcoin price remains in an uptrend against the US Dollar, and may continue to gain strength. There was a minor dip this past week, and then the price spiked higher. During the upside move the price broke the 61.8% Fib retracement level of the last wave from the $625 low to $729 high to open the doors for an upside move.
The BTC/USD pair even broke the last high to trade as above the $750 level. However, the BTC sellers appeared around $760, and pushed the pair down. There was a downside move, taking the price back towards the $700 level. However, a crucial bullish trend line formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD acted as a support area and protected losses. The price is now bouncing back.
It has already broken the 38.2% Fib retracement level of the last drop from the $758 high to $665 low. It is a clear signal that the price may continue to move higher, and could even test the last swing high of $758. One may consider buying dips as long as the price is above the trend line support.
Looking at the technical indicators:
4-hours MACD – The MACD is currently in the bearish zone, but slowly changing bias.
4-hours RSI (Relative Strength Index) – The RSI has just moved back above the 50 level, which is a positive sign.
Major Support Level – $700
Major Resistance Level – $730
Charts courtesy – SimpleFX
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