- Bitcoin price after losing momentum finally managed to gain bids this past week for another leg higher.
- The price closed above the $400 level, which is a positive sign for the bulls moving ahead.
- There is a support trend line formed on the 4-hours chart (data feed from Bitstamp), which may act as a hurdle for sellers if the price moves down.
Bitcoin price climbed higher this past week. And, looking at the current market sentiment there is a chance of more upsides in the short term.
Bitcoin Price- Buy Dips?
Bitcoin price enjoyed a decent upside move this past week, as buyers were successful in taking it above the $400 resistance area. The stated level acted as a hurdle for them on many occasions, and a weekly close above it means a lot of optimism. The price traded a few points above the $430 level, and it looks like the price may trade down or correct in order to gain bids in the near term.
There is an important support trend line formed on the 4-hours chart (data feed from Bitstamp), which may play a crucial role if the price corrects. One might consider buying near the highlighted trend line and support area, as the 38.2% Fib retracement level of the last leg from the $404 low to $433.45 high is positioned near it.
Only a break below it may call for a down-move that could take the price towards the 61.8% Fib retracement level of the last leg from the $404 low to $433.45 high. However, the price is well above the 100 simple moving average, which is a positive sign.
On the upside, a break above $435 may take the price towards $450 in the near term.
Looking at the technical indicators:
4-hours MACD – The MACD may change the slope to bullish that may ignite an upside move.
4-hours RSI (Relative Strength Index) – The hourly RSI is around the overbought levels, calling for a correction.
Intraday Support Level – $422
Intraday Resistance Level – $435
Charts from Bitstamp; hosted by Trading View