- Bitcoin found strong buying interest around 240.00, and it is likely to spike towards 245.00-247.00 moving ahead.
- 38.2% Fib retracement level of the last wave is providing support to the Bitcoin price.
Bitcoin price recently moved lower towards the middle band of Bollinger bands where buyers managed to hold the downside. It is basically the 20 SMA (4-hours chart), which is acting as a catalyst for Bitcoin. Earlier, it traded towards 250.00 where it found sellers to move back towards the 38.2% Fib retracement level of the last wave of 227-247. There is a bearish trend line on the 4-hours chart, which was one of the main reasons why Bitcoin struggled to move higher.
RSI above 50 Level
There is a chance that prices might move higher one more time to test the highlighted trend line, which could act as a hurdle in the short term. The 4H RSI is coming close to the 50 level, suggesting that prices are heading towards a support area and might find buyers. If it stays above the neutral level, there is a possibility of Bitcoin spiking higher.
There is a bearish sign to note on the MACD, which is pointing that the price is struggling and might move lower. There is a change of slope and cross developing, which if turns out true might call for losses in Bitcoin in the near term.
Intraday Support Level – 240.00
Intraday Resistance Level – 247.50
If the price of Bitcoin moves lower, it might find support around the recent low of 240.00, followed by the 20 SMA (4H). On the upside, the last swing high of 247.50 might continue to act as a barrier moving ahead.
Overall, selling rallies close to the mentioned resistance area would make the trade worthwhile.
Charts courtesy of Trading View