- Bitcoin price corrected sharply after trading towards $2650 against the US Dollar, but remains supported on the downside.
- The last week’s highlighted important bullish trend lines with support at $1940 and $1800 on the 4-hours chart of BTC/USD (data feed from SimpleFX) are holding well.
- As long as the price is above these trend lines and $1800, it is likely to move back above $2200.
Bitcoin price after a surge towards $2700 against the US Dollar corrected lower, but these dips in BTC/USD are protected by a major support area.
Bitcoin Price Buy Dips?
In the last weekly analysis, I mentioned that the overall trend is bullish with chances of a move above $2100 in Bitcoin price against the US Dollar. There was no stopping the price, as it climbed above $2100, $2400 and even $2500. It traded as high as $2684 where it faced sellers and started a downside move. First, it cleared the 23.6% Fib retracement level of the last wave from the $1664 low to $2684 high. It called for the start of a correction below $2500.
The price dived sharply and even broke the $2200 support. The most important break was below the 50% Fib retracement level of the last wave from the $1664 low to $2684 high. However, the downside move was prevented by the last week’s highlighted important bullish trend lines with support at $1940 and $1800 on the 4-hours chart of BTC/USD. These trend lines are acting as a monster support above $1800.
The price also struggled to close below the 100 simple moving average (H4) at $1988. These are positive signs, and means the price is above a major support at $1800. As long as there is no daily close below $1800, we may see a sharp recovery above $2150 and $2200 in the near term.
Looking at the technical indicators:
4-hours MACD – The MACD is currently in the bearish zone, but recovering.
4-hours RSI (Relative Strength Index) – The RSI is heading higher from the oversold levels.
Major Support Level – $1800
Major Resistance Level – $2200
Charts courtesy – SimpleFX