Key Highlights
- Bitcoin prices surged higher this past week and briefly traded close to the ¥3000-3100 resistance area.
- The price is currently correcting lower and approaching towards a major support trend line on the 4-hour chart (data feed from BTCChina).
- Buying dips may be a good idea if the price trades near the ¥2600 support area.
Bitcoin’s price is following a nice bullish trend, and it looks like there are chances of more gains in the near term as long as the price is above the 100 MA.
Buy Dips?
Bitcoin prices rocketed higher this past week, and spiked above the ¥3000 resistance area against the Chinese Yuan. The price traded as high as ¥3100, where it found sellers for a downside move. There is a correction phase underway that may take the price lower towards a crucial bullish trend line on the 4-hour chart (data feed from BTCChina).
The most important point regarding the highlighted trend line is the fact that it is aligned with the 100 simple moving average. It suggests that there is a critical support area forming near ¥2600, and if the price moves lower from the current levels, then buyers could take a stand near the stated support area.
If we look at the hourly chart with the data feed from Huobi, then we see a nasty decline from ¥3100 to ¥2650. The price already recovered to some extent, and settled back above the 100 hourly MA. On the upside, an initial resistance is near the 50% Fibonacci retracement level of the last drop from the ¥3100 high to the ¥2655 low.
Looking at the Indicators
4H MACD – The MACD is about to change the slope to bearish, suggesting buyers are under pressure.
4H RSI (Relative Strength Index) – The 4H RSI is just around the 50 level, which may hold the key for the next move in the short term.
Intraday Support Level – ¥2600
Intraday Resistance Level – ¥2890
Charts from BTCChina and Huobi; hosted by Trading View
