Key Points
- Bitcoin price managed to climb higher this past week against the US Dollar, and looks set for more gains.
- There was a bearish trend line break noted on the on the 4-hours chart (data feed from Bitstamp) of BTC/USD, which is a positive sign.
- The price also moved above the 100 simple moving average on the 4-hours chart during the upside move.
Bitcoin price recently moved above a major resistance area, and if the current break is true, there are chances of more upsides in BTC/USD.
Bitcoin Price Break
Bitcoin price started to move higher this past week against the US Dollar and broke a major resistance of $680. The best part is that the price also closed above the 100 simple moving average on the 4-hours chart. There was a bearish trend line on the 4-hours chart (data feed from Bitstamp) of BTC/USD, which was also cleared during the upside move.
Moreover, the price also settled above the 50% Fib retracement level of the last drop from the $780 high to $540 low, which is a bullish sign in the short term. All these signs suggest that the BTC may continue to gain pace against the US dollar, and might trade towards the $720 resistance area one more time.
The stated resistance area also coincides with the 76.4% Fib retracement level of the last drop from the $780 high to $540 low. I think one may consider buying dips in the BTC/USD pair as long as the price is above the 100 SMA (H chart).
Looking at the technical indicators:
4-hours MACD – The MACD is in the bullish slope, which is a positive sign for the BTC bulls in the near term.
4-hours RSI (Relative Strength Index) – The RSI is also above the 50 level, suggesting the bulls had an upper hand.
Major Support Level – $680
Major Resistance Level – $720
Charts from Bitstamp; hosted by Trading View
