Bitcoin (BTC) Price Remains Strong Buy On Dips Despite Binance Hack

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price traded to a new 2019 high above $5,950 and recently corrected lower against the US Dollar.
The price declined below the $5,900 and $5,840 support levels, but it remained well bid.
There was a break below a connecting bullish trend line with support near $5,840 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to climb higher once towards the $5,880 and $5,900 levels in the near term.

Bitcoin price started a downside correction after testing $5,950-6,000 against the US Dollar. BTC remains well supported in the short term near the $5,740 and $5,560 levels.

Bitcoin Price Analysis

Yesterday, there was a fresh rise in bitcoin price above the $5,850 resistance against the US Dollar. The BTC/USD pair climbed above the $5,900 level and traded close to the $6,000 resistance level. A new 2019 high was formed near $5,965 and the price recently corrected lower. There was a sharp dip below the $5,900 level, triggered by the report of 7,000 BTC hack news from the cryptocurrency exchange, Binance. The price declined below the $5,800 support and the 50% Fib retracement level of the last wave from the $5,563 low to $5,962 high.

During the decline, there was a break below a connecting bullish trend line with support near $5,840 on the hourly chart of the BTC/USD pair. The pair even spiked below the $5,700 level and the 100 hourly simple moving average. It tested the 76.4% Fib retracement level of the last wave from the $5,563 low to $5,962 high. After tagging the $5,670 level, the price bounced back. It is currently trading above the $5,750 level and the 100 hourly simple moving average.

On the upside, an immediate resistance is near the $5,840 level. If there is an upside break above the $5,840 level, the price may retest the $5,900 level. Any further gains could push the price towards the $5,950-5,960 resistance zone. On the downside, an initial support is at $5,760. The next key support is near the $5,740 level and the 100 hourly SMA.

Looking at the chart, bitcoin price clearly corrected lower sharply, but later bought back above $5,740. Therefore, there are high chances of a fresh rise towards the $5,900 and $5,950 level. Conversely, if the price breaks the 100 hourly SMA, it could revisit the main support near the $5,560 level in the coming sessions.

Technical indicators:

Hourly MACD – The MACD is currently placed in the bearish zone, with a few positive signs.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently moving higher and it could break 50.

Major Support Levels – $5,740 followed by $5,560.

Major Resistance Levels – $5,840, $5,900 and $5,960.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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