- Bitcoin price traded higher this past week vs the US Dollar, but failed to maintain the gains.
- There is a monster bullish trend line formed on the 4-hours chart (data feed from Bitstamp) of BTC/USD, which is acting as a support area and holding the downside.
- The price is above the 100 simple moving average on the 4-hours chart, which is a positive sign.
Bitcoin price traded as high as $464 recently where it found sellers. Moving ahead, as long as the trend line holds, BTC may trade higher once again.
Bitcoin Price- Trend Line Support Importance
Bitcoin price gained bids this past week vs the US Dollar and traded as high as $464, but it could not sustain the bullish bias. The price moved down once again, but thankfully, there is a monster bullish trend line formed on the 4-hours chart (data feed from Bitstamp) of BTC/USD that prevented the downside move. The price also found bids near the 100 simple moving average on the 4-hours chart.
BTC is once again attempting to trade higher, but it is facing sellers near the 50% Fibonacci retracement level of the drop from the $464 high to $447 low. A break above the mentioned fib level may put bitcoin back in the bullish zone. In that situation, the BTC bulls might attempt to take the price back towards the last swing high of $464.
On the downside, the highlighted trend line support area along with the 100 simple moving average on the 4-hours chart hold the key. A break below it might call for more losses in the short term, and could take BTC towards $440.
Looking at the technical indicators:
4-hours MACD – The MACD is in the bullish slope, which is a positive sign.
4-hours RSI (Relative Strength Index) – The RSI is above the 50 level, suggesting more gains in the short term.
Major Support Level – $450
Major Resistance Level – $460
Charts from Bitstamp; hosted by Trading View