Key Highlights
- Bitcoin price surged higher and moved above a few critical resistances as there were inflows noted for the digital currencies due to the risk off sentiment.
- The price is well above the 100 simple moving average on the 4-hours chart, which is a positive signal.
Bitcoin inflows suggest that the digital currencies started taking advantage of the risk off sentiment. A gold alternative approach?
We stated in the previous weekly analysis suggested that the Bitcoin price might trade higher and clear an important hurdle around 250.00 to surge higher. There was a clear break above a major resistance level of 250.00, which opened the doors for a move towards the next barrier of 260.00. Buyers managed to break the mentioned level and the price traded as high as 267.94 where it found sellers.
Buy dips?
The price after trading close to the 270.00 level started a correction phase and also tested the 50% Fib retracement level of the last leg from the 240.00 low to 267.90 high. The stated Fib level acted as a support for the short term and pushed the price higher. It looks like the price has completed a minor correction phase, and more upsides are likely moving ahead. One important point is that the 100 simple moving average is placed below the current price and might act as a support if the price dips from the current levels.
There is a bullish trend line on the 4-hours chart, which is also a support area. There is a lot of buying interest seen on the dips, as a number of supports are aligned on the downside. The 4H RSI is also positioned in the bullish zone, suggesting gains in the near future.
Intraday Support Level – 255.00
Intraday Resistance Level – 268.00
Overall, buying dips is a good option as long as the 100 MA is intact.
Charts courtesy of Trading View
