Key Points
- Bitcoin price after trading near the $450 level found sellers and started to move down.
- There is a bullish trend line formed on the 4-hours chart (data feed from Bitstamp), which may be seen as a buy zone in the near term.
- On the upside, the $450 is a major resistance area, which if broken could take the price higher.
Bitcoin price is showing a lot of positive signs. As long as it is above the 100 simple moving average (H4 chart) more gains are likely.
Bitcoin Price- Continue Buying?
Bitcoin price as mentioned found sellers near a major resistance area of $450 and corrected lower. However, there is a bullish trend line formed on the 4-hours chart (data feed from Bitstamp), which acted as a support and prevented any further losses. The price is now attempting to recover in the near term, and may trade higher moving ahead.
It is currently trading near the 61.8% Fib retracement level of the last drop from the $448 high to $404 low. If buyers manage to take it above the stated fib level, then more gains are possible. The next hurdle on the upside could be around the 88.6% Fib retracement level of the last drop from the $448 high to $404 low.
On the downside, one must keep following the highlighted trend line and support area. A break below it may put a lot of pressure on the bulls, and could take the price towards the 100 simple moving average (H4 chart). The most important support on the downside is around the $400 handle.
Looking at the technical indicators:
4-hours MACD – The MACD is in the bullish slope, which may act as a catalyst for an upside move.
4-hours RSI (Relative Strength Index) – The hourly RSI is above the 50 level, which is a positive sign.
Intraday Support Level – $420
Intraday Resistance Level – $445
Charts from Bitstamp; hosted by Trading View
