Key Points
- Bitcoin price after moving down towards the $407-05 support area started a recovery, but it is heading towards a major resistance area of $415-17.
- There is a bearish trend line and 100 simple moving average positioned on the hourly chart (data feed from Bitstamp) of BTC/USD at $417.
- BTC buyers may find it tough to break the highlighted resistance area in the short term.
Bitcoin price is currently correcting higher, but facing an important hurdle on the upside. Can BTC/USD manage to break $417 and gain further?
Bitcoin Price – Trend Line Resistance
As highlighted in yesterday’s post, Bitcoin price started to correct higher after trading as low as $407. However, the current recovery in BTC/USD won’t be an easy ride, as there is a monster barrier formed on the upside for the BTC buyers. There is a confluence resistance area forming near a bearish trend line on the hourly chart (data feed from Bitstamp).
The highlighted trend line resistance is positioned with the 100 hourly simple moving average, and the 50% Fib retracement level of the last drop of the $426 low to $407 low at $417. So, if the price moves closer to the highlighted confluence resistance area, then there is a chance of sellers appearing and preventing any additional gains.
One may even consider selling near $417 in the short term, but the stop should be very tight (a close above the 100 hourly simple moving average). On the downside, an initial support is at $410, followed by the last low of $407.
Looking at the technical indicators:
Hourly MACD – The hourly MACD is in the bullish slope, which means the price may move towards the highlighted resistance area.
RSI (Relative Strength Index) – The RSI is just around the 50 levels, and if the level breaks, the price may move down.
Intraday Support Level – $410
Intraday Resistance Level – $417
Charts from Bitstamp; hosted by Trading View
