- Bitcoin price traded higher and managed to clear an important breakout pattern to open the doors for more gains in the near term.
- There is a major hurdle around the 250.00-255.00 area where buyers might struggle moving ahead.
There was a nice bullish break noted for Bitcoin Intraday, as there was a contraction triangle formed on the 4-hours chart that was breached by buyers. The upside move after the break was convincing. The price traded as high as 251.94 and started correcting lower. An initial support on the downside is around the 38.2% Fib retracement level of the leg from the 238.00 low to 251.94 high, which is also sitting around the Middle Bollinger Band. There might be a buying interest developed if the price moves lower from the current levels.
61.8% Fib level as pivot
There is a major support forming around the 61.8% Fib retracement level, as the 100 simple moving average (4H) is aligned with the mentioned fib level along with the broken triangle trend line. So, there is a critical area building around 243.00 for buyers. The 4H RSI and the MACD are shaping up nicely, and signaling more gains in the near future. A break above the last high of 252.00 might ignite a rally towards the next barrier at 260.00.
However, we cannot deny the fact that there is a chance of a correction moving ahead. On the downside, sellers would find it tough to take the price lower, as there are a lot of bullish signs visible on the charts. There is even no sign of divergence on the 4H and the hourly chart.
Intraday Support Level – 243.00
Intraday Resistance Level – 252.00
Overall, buying any major retracement from the current levels might be a nice buying opportunity.
Charts courtesy of Trading View