- Bitcoin price continued to move higher against the US Dollar, and my buy dips idea highlighted in yesterday’s post worked perfectly.
- The price cleared a bearish trend line formed on the hourly chart (data feed from Bitstamp), and looks set for more gains.
- The price almost reached $425, which is a resistance area and I think it’s time to book profits if you are in a trade.
Bitcoin price moved higher after a minor correction as forecasted. Read more how BTC/USD can trade from the current levels.
Bitcoin Price is all Bullish?
Bitcoin price surged higher and after a minor correction managed to gain bids for another upside move. I highlighted a plan of buying dips yesterday, which worked perfectly, and now I think it is time to book profits as BTC/USD is heading towards a major resistance area and it is not worth the risk.
The price stayed above a major bullish trend line formed on the hourly chart (data feed from Bitstamp), and also managed to break a minor bearish trend line on the same chart. BTC to USD almost tested the 50% Fib retracement level of the last wave of the $412 low to $427 high and started to move higher.
BTC/USD may be heading back towards the $427 high, but the bulls need to be careful, as there is a convergence forming. I think the best idea is to stay away for a couple of sessions, and wait for the price to stabilize, then we can analyze further. On the downside, the $420 level remains a major support area for the BTC in the short term.
Looking at the technical indicators:
Hourly MACD – The hourly MACD is in the bullish slope, suggesting buyer’s strength.
RSI (Relative Strength Index) – The RSI is positioned well above the 50 levels, which is a bullish sign.
Intraday Support Level – $420
Intraday Resistance Level – $425
Charts from Bitstamp; hosted by Trading View