Analysis Technical

Bitcoin Price Watch: BTC/USD Holding Key Supports Above $6,350

Aayush Jindal | October 8, 2018 | 9:28 am
technical analysis bitcoin
Analysis

Bitcoin Price Watch: BTC/USD Holding Key Supports Above $6,350

Aayush Jindal | October 8, 2018 | 9:28 am

Key Points

  • Bitcoin price is trading above the $6,400 and $6,450 support levels against the US Dollar.
  • There is a significant contracting triangle in place with support at $6,460 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could make the next move either above $6,640 or below $6,460 in the near term.

Bitcoin price is trading nicely above the $6,350 pivot level against the US Dollar. BTC/USD is likely to make an attempt to surpass the $6,640 resistance.

Bitcoin Price Analysis

There was a strong support base formed above the $6,320 and $6,350 levels by bitcoin price against the US Dollar. The BTC/USD pair traded higher and formed a few lower highs at $6,800, $6,700 and $6,640. The recent swing low was formed at $6,398 before the price traded above $6,500. There was a break above the $6,600 level and the 100 hourly simple moving average. The price even broke the 50% Fib retracement level of the last drop from the $6,797 high to $6,398 low.

However, the upside move was capped by the $6,640 level. It represents the 61.8% Fib retracement level of the last drop from the $6,797 high to $6,398 low. The pair declined and traded below the $6,550 level and the 100 hourly SMA. At the outset, there is a significant contracting triangle in place with support at $6,460 on the hourly chart of the BTC/USD pair. On the upside, a break above the triangle resistance and $6,640 is needed for a push towards $6,800. On the other hand, below the triangle support the price could decline towards the key $6,350 support.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price seems to be preparing for the next move either above $6,640 or below $6,460. The current price action indicates that buyers may soon try to push the price above $6,640 and $6,700.

Looking at the technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI is currently above the 50 level.

Major Support Level – $6,460

Major Resistance Level – $6,640

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