- Bitcoin price finally gained traction and moved higher to trade above 230.00.
- It broke an important resistance area, and looks set for a move towards the next resistance area at 235.00.
Bitcoin price struggled recently, but this past week buyers were seen active as the price moved higher. There was a bearish trend line formed on the 4-hours chart, which was cleared by buyers. One important point to note is that the 100 simple moving average was also broken during the upside move, which is a bullish sign in the short term. This was not all, as the 50% Fib retracement level of the last drop from the 241.00 high to 219.00 low. The price after surging above the highlighted bullish trend line found resistance around the mentioned Fib level. It consolidated for some and then once again higher.
The next level of interest can be seen around the 61.8% Fib retracement level. However, the most critical hurdle for buyers could be around 235.00 where sellers are likely to appear to protect the upside.
Bullish trend line formation
There is a minor bullish trend line formed on the 4-hours timeframe, which might act as a short-term support for Bitcoin. Moreover, the 100 SMA is also a support if the price corrects lower from the current levels, as it is sitting just below the highlighted bullish trend line.
There is a warning sign developing for buyers, as the 4H RSI is around the overbought levels, suggesting that a minor correction is possible moving ahead.
Intraday Support Level – 225.00
Intraday Resistance Level – 235.00
There is a divergence forming as the RSI is pointing a correction and MACD is under a consolidation phase. Let us see how the price trades in the near term, and if it corrects lower, then it can be seen as a buying opportunity.
Charts courtesy of Trading View