- Bitcoin price after trading in a range for some time against the US Dollar started moving higher.
- There was a crucial contracting triangle pattern formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD, which was broken during the recent upside.
- The price is also above the 100 simple moving average, which is a positive sign for buyers.
Bitcoin price broke a major resistance zone versus the US Dollar, and currently looks poised for more gains in the near term.
Bitcoin Price Buy Dips
Bitcoin price earlier this past week traded a few points lower against the US Dollar. Later, it started trading in a range. While trading in a range there was a crucial contracting triangle pattern formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD. Once the range pattern completed, there was an upside move. The BTC bulls managed to break the highlighted contracting triangle pattern and took the price higher.
The recent upside move looks convincing due to two reasons. First, the BTC/USD pair is now above the 50% Fib retracement level of the last drop from the $602 high to $560 low. Second, the price is now above the 100 simple moving average (H4 chart). These both signs are very positive, and suggests that there can be more gains in BTC/USD.
Currently, the price is struggling to clear the 61.8% Fib retracement level of the last drop from the $602 high to $560 low. So, there is a chance of a minor dip in BTC/USD before buyers step in once again. Buying dips may be considered with a stop below $575.
Looking at the technical indicators:
4-hours MACD – The MACD is now in the bullish slope, which is a good sign for the bulls.
4-hours RSI (Relative Strength Index) – The RSI is well above the 50 level, calling for more gains in BTC/USD.
Major Support Level – $575
Major Resistance Level – $588
Charts courtesy – SimpleFX