- Bitcoin price after trading close to $425 this past week against the US Dollar found sellers and moved down.
- BTC/USD tested a bullish trend line on the 4-hours chart (data feed from Bitstamp), which provided support and prevented a break.
- The price is testing the 100 simple moving average on the same chart, which is acting as a resistance and can be seen as a major hurdle for the bulls.
Bitcoin price traded below 100 SMA (H4 chart) recently, which is acting as a resistance now. A break above it is needed for BTC/USD to gain momentum.
Bitcoin Price – Buy with a break?
Bitcoin price traded a few points higher this past week, but it struggled once again to break the $425-30 resistance area and started to move down. During the downside drift BTC/USD broke the 100 simple moving average (H4 chart), which can be considered as a crucial break. However, the price found support near a bullish trend line on the 4-hours chart (data feed from Bitstamp) of BTC to USD.
There was a sharp reaction noted around the trend line support from where the price bounced back. However, the broken 100 SMA (H4 chart) is currently acting as a resistance for more gains. It can act as a turning point for Bitcoin price. If BTC/USD breaks it and the price settles above 100 SMA, then more upsides are possible. One may consider buying with a break and close above it with a tight stop of around 2 points.
Buying dips may also not be a bad idea as long as BTC/USD is above the trend line support with a stop below the same.
Looking at the technical indicators:
4-hours MACD – The MACD is in the bearish zone, which means the bears have an upper hand.
4-hours RSI (Relative Strength Index) – The RSI is below the 50 level, which is a bearish sign as long as the price is below the 100 SMA.
Major Support Level – $412
Major Resistance Level – $425
Charts from Bitstamp; hosted by Trading View