- Bitcoin price after recovering after hack losses against the US Dollar consolidated for some time and then moved higher.
- There was a major contracting triangle pattern formed on the hourly chart (data feed from SimpleFX) of BTC/USD, which was broken during the upside move.
- The recent break in the pair suggests that the price has turned bullish and one may consider buying it.
Bitcoin price is back in action as traders sidelined post Bitfinex hack losses. Are you the one looking to enter a buy trade in BTC/USD?
Bitcoin Price Break
Bitcoin price recovered sharply against the US Dollar after declining as low as $465 post the Bitfinex hack news. The price is now back above the $550 level and was seen consolidating for some time. Once the consolidation phase was over, there was a break higher. The BTC bulls managed to clear a monster contracting triangle pattern formed on the hourly chart (data feed from SimpleFX) of BTC/USD.
The price surged higher and traded close to the $585 level after the break where it found offers. The price is currently correcting lower and trading near the 23.6% Fib retracement level of the last wave from the $556 low to $585 high. I think there is a chance of an extension of the current correction, which can be considered as a buying opportunity.
A test of the 38.2% Fib retracement level of the last wave from the $556 low to $585 high, which is at $574 is possible where the bulls may take a stand. Any further declines below it could take the price towards the 100 hourly simple moving average, which may act as a major support.
Looking at the technical indicators:
Hourly MACD – The MACD is now in the bullish slope, which is a positive sign for BTC.
Hourly RSI (Relative Strength Index) – The RSI is also above the 50 level, suggesting bears are on the back foot.
Major Support Level – $574
Major Resistance Level – $585
Charts courtesy – SimpleFX