Analysis Technical

Bitcoin Price Watch: Here is Why BTC/USD Remains in Uptrend

Aayush Jindal | August 30, 2018 | 8:48 am
technical analysis bitcoin
Analysis

Bitcoin Price Watch: Here is Why BTC/USD Remains in Uptrend

Aayush Jindal | August 30, 2018 | 8:48 am

Key Points

  • Bitcoin price corrected lower after setting a new weekly high around $7,130 against the US Dollar.
  • Yesterday’s discussed significant bullish trend line is intact with support at $6,920 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair remains well supported near the $6,920 and $6,850 levels in the near term.

Bitcoin price dipped a few points to test the $6,920 support against the US Dollar. BTC/USD remains in uptrend as long as it is above $6,775.

Bitcoin Price Analysis

Yesterday, we saw a sharp bullish wave above the $7,000 resistance in bitcoin price against the US Dollar. The BTC/USD pair traded as high as $7,131 and later started a downside correction. It declined below the $7,025 support and started trading in a range. There was a break below the 23.6% Fib retracement level of the last rise from the $6,709 low to $7,131 high.

There was even a spike below the $7,000 and $6,950 levels. However, the 50% Fib retracement level of the last rise from the $6,709 low to $7,131 high acted as a strong support. There was no close below the $6,920 support and the 50% Fib level. More importantly, yesterday’s discussed significant bullish trend line is intact with support at $6,920 on the hourly chart of the BTC/USD pair. Below the trend line, the 100 hourly simple moving average is positioned near the $6,870 level. However, the main support for the current trend is $6,775, which was a resistance earlier.

Bitcoin Price Analysis BTC USD

Looking at the chart, bitcoin seems to be very well supported near the $6,950, $6,870 and $6,775 levels. On the upside, the price has to clear the $7,025 and $7,080 resistance to challenge the $7,131 high. Finally, a break above $7,130-50 could set the pace for a test of $7,250.

Looking at the technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI is bouncing back from the 40 level.

Major Support Level – $6,920

Major Resistance Level – $7,080

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