Analysis Technical

Bitcoin Price Watch: BTC/USD’s Bullish Scenario

Aayush Jindal | May 21, 2018 | 8:48 am
technical analysis bitcoin
Analysis

Bitcoin Price Watch: BTC/USD’s Bullish Scenario

Aayush Jindal | May 21, 2018 | 8:48 am

Key Points

  • Bitcoin price moved higher and broke the $8,300 resistance level against the US Dollar.
  • There is a significant ascending channel formed with support at $8,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to accelerate gains above $8,650 if it continues to follow the ascending channel.

Bitcoin price is trading with a positive bias above $8,400 against the US Dollar. BTC/USD could extend the current move above the $8.650 and $8,800 resistance levels.

Bitcoin Price Analysis (BTC/USD)

After a spike below the $8,000 level, bitcoin price found a strong buying interest against the US Dollar. The BTC/USD pair traded as low as $7,915 before starting an upside move. It gained traction and moved above the $8,000, $8,200 and $8,400 resistance levels. The upside move was positive since there was a close above the $8,400 pivot level and the 100 hourly simple moving average.

BTC buyers got in control and pushed the price above the last swing high of $8,506. It opened the doors for more gains and it seems like the price may well test the 1.236 Fib extension level of the last decline from the $8,506 high to $7,915 low. At the moment, the price is consolidating gains above the $8,400 level. There is also a significant ascending channel formed with support at $8,400 on the hourly chart of the BTC/USD pair. Should the price gain bullish momentum, it could easily break the $8,600 resistance to test the 1.618 Fib extension level of the last decline from the $8,506 high to $7,915 low at $8,870.

Bitcoin Price Analysis BTC USD

Looking at the chart, the price remains well supported above the $8,400 level. A downside break below $8,400 may well call for a short-term reversal of the current trend.

Looking at the technical indicators:              

Hourly MACD – The MACD for BTC/USD is slightly in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI is moving lower towards the 50 level.

Major Support Level – $8,400

Major Resistance Level – $8,650

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