- Bitcoin price busted higher against the US Dollar and broke a major resistance at $900.
- Yesterday’s highlighted bullish trend line on the hourly chart (data feed from SimpleFX) of BTC/USD was a perfect support and buy area.
- The price corrected lower, tested the trend line and bounced back.
Bitcoin price continues to gain momentum against the US Dollar and traded past $900. Let us see if the BTC/USD pair can challenge $1000 or not.
Bitcoin Price Bullish Trend
There was no stopping Bitcoin price, as it busted higher against the US Dollar, and broke yet another important resistance at $900. Yesterday, we saw how the price traded above $800 and gained pace for a ride above $850. I highlighted the chances of a minor correction in BTC/USD yesterday. The price did correct a few points, and jumped sharply to gain pace.
The most important point was that yesterday’s highlighted bullish trend line on the hourly chart (data feed from SimpleFX) of BTC/USD acted as a good support. It provided bids, and helped the pair in gaining momentum one more time. The price traded higher and today went past another crucial resistance of $900. If the current momentum and pace continues, there is a chance that the pair may even test the $940 handle soon.
The same trend line support is still intact on the downside, and may provide support if the pair corrects lower towards $900 (data feed from SimpleFX), else $880 when we consider average of other brokers. An initial support on the downside is at 23.6% Fib retracement level of the last leg from the $865 low to $927 high. One may continue buying dips as long as the current market sentiment is intact.
Looking at the technical indicators:
Hourly MACD – The MACD is super bullish, and calling for further upsides.
Hourly RSI (Relative Strength Index) – The RSI is in the overbought levels, but with no sign of a correction.
Major Support Level – $900
Major Resistance Level – $940
Charts courtesy – SimpleFX