- Bitcoin price enjoyed a decent upside ride against the US Dollar, and it looks poised for more gains.
- There is a bullish trend line formed on the daily chart (data feed from Bitstamp) of BTC/USD, which is acting as a catalyst for the upside move.
- If the current technical indicators are correct, there is a chance of BTC/USD breaking $600.
Bitcoin price is gaining momentum as the daily chart of BTC/USD looks positive. Can BTC retain strength to break the $600 handle?
Bitcoin Price Eyeing Gains
Bitcoin price grinded higher this past week vs the US Dollar and gained a lot of strength. The last 10 daily candles are impressive and suggesting that the BTC bulls are in control. The price broke an important resistance area near $550, which may now act as a support area if BTC/USD moves down from the current or higher levels. As mentioned, there is a bullish trend line formed on the daily chart (data feed from Bitstamp) of BTC/USD, which acted as a reason for the upside surge.
Now let us look at how far the price can move? I think there are high chances of the price breaking the all-important $600 level. If we look at the last wave, then the 1.618 extension of the last drop from the $500 high to $295 low is around the $625 level. So, I think the price may test the mentioned extension, and may even break it in the near term.
The price is also well above the 100-day simple moving average, which is a bullish sign and may lift the market sentiment further.
Looking at the technical indicators:
Daily MACD – The MACD is strongly bullish and calling for more gains in BTC/USD.
Daily RSI (Relative Strength Index) – The RSI is around the overbought levels, which may ignite a minor downside reaction as a correction.
Major Support Level – $550
Major Resistance Level – $600
Charts from Bitstamp; hosted by Trading View