- Bitcoin price is on the verge of a monster explosion vs the US dollar, as there is a crucial breakout pattern formed.
- There is a bullish trend line formed on the weekly chart (data feed from Bitstamp) of BTC/USD, which is acting as a major support on the downside.
- On the upside, there a significant resistance near $465-470, which is preventing gains in BTC.
Bitcoin price may surprise many traders, as there is a monster breakout pattern forming for BTC/USD on the higher timeframe chart that can ignite a major move.
Bitcoin Price – Trade With a Break
Many BTC traders are waiting for some action from a long time, but there were mostly ranging moves in BTC/USD. The main reason is the fact that Bitcoin price is currently consolidating before it breaks either higher or lower. If we look at the higher timeframe chart like the weekly chart (data feed from Bitstamp) of BTC/USD, then there is a crucial breakout pattern formed.
On the downside, there is a bullish trend line formed, which is acting as a support area. On the upside, there is a major resistance near $465-470, which is acting as a hurdle for more gains in BTC. So, we can say that the price is stuck between two important levels.
A break on the either side might call for a sharp move in BTC/USD. I would not suggest a buy or sell trade, instead I would say if you are looking for a medium term trade, then wait for a break before entering. You can enter on a successful break and close, so that chances of success are more.
Looking at the technical indicators:
Weekly MACD – The weekly MACD is almost flat, suggesting the price is consolidating.
RSI (Relative Strength Index) – The RSI is above 60 levels, which is a positive sign for the BTC bulls.
Weekly Support Level – $440
Weekly Resistance Level – $470
Charts from Bitstamp; hosted by Trading View
Header Image via NewsBTC