- Bitcoin price managed to gain strength this past week and traded close to the $432 area where it found offers.
- There is a bullish trend line on the 4-hours chart (data feed from Bitstamp) of BTC/USD, which may be seen as a support area if the price moves down.
- Buying dips may be considered as long as the price is above the trend line and support area.
Bitcoin price slow and steadily moved higher, but found sellers near $432. Moving ahead, buying dips in BTC/USD may be considered.
Bitcoin Price- Buy Dips?
Bitcoin price traded after trading lower towards the $410 level found support and started to move higher. There was a slow and steady downside move, and in the process of the upside move, there is a bullish trend line on the 4-hours chart (data feed from Bitstamp) of BTC/USD. The highlighted trend line and support area may play a major role for BTC/USD in the near term, and as long as the price is above it, there is a chance of more gains.
The last two 4-hour candles were bearish, signaling more losses in the short term. It is possible that BTC could trade down and test the highlighted trend line and support area where it could find buyers. The 100 hourly simple moving average, and the 38.2% Fib retracement level of the last wave from the $412 low to $432 high is also around the trend line support.
So, we can say that the $424-00 area is a major support area where one may consider buying with a stop below the trend line.
Looking at the technical indicators:
4-hours MACD – The MACD may be moving towards the bullish zone, which means there is a chance of a minor correction.
4-hours RSI (Relative Strength Index) – The RSI is above the 50 level, pointing that the bulls are in action.
Major Support Level – $412
Major Resistance Level – $425
Charts from Bitstamp; hosted by Trading View