Key Highlights
- Bitcoin’s price is forming an interesting bullish structure, which is pointing towards more gains in the near term.
- There is a support trend line formed on the 4-hour chart (data feed from HitBTC), which may act as a catalyst for an upside move.
- A short-term breakout pattern (triangle) is forming on the hourly chart (data feed from Bitstamp).
Bitcoin’s price looks set for an upside move, maybe above $500 if buyers remain in control, and if the price stays above a support trend line on H4.
Buy Dips?
Bitcoin’s price—after trading towards $300—started a new bullish trend, and looking at the current 4-hour chart, there are enough reasons for the bulls to push the price above $500. There is a major bullish trend line formed on the 4-hour chart (data feed from HitBTC), suggesting that sellers are struggling to take the price down.
The price has already crossed the 76.4% Fibonacci retracement level of the last drop from the $518 high to the $312 low once. So, there is a high probability of it trading back towards the last swing high, which is $518. The 4H Relative Strength index is well-supported and above the 50 level, which is a positive sign.
Looking at the data feed from Bitstamp, the price is still trading in a strong uptrend inside its ascending triangle pattern on the 1-hour chart. If the price manages to clear the triangle’s resistance area, then it could be considered as an early sign of a move towards $500. Buyers need to also break the 61.8% Fibonacci retracement level of the last drop from the $467 high to $403 low.
Looking at the Indicators
Moving Average – The 100 hourly simple moving average (SMA) is perfectly aligned with the highlighted support trend line, pointing to it as a buy area.
RSI (Relative Strength Index) – The hourly RSI is above the 50 level, which is a bullish sign.
Intraday Support Level – $430
Intraday Resistance Level – $450
Charts from HitBTC and Bitstamp; hosted by Trading View
