Key Points
- Bitcoin price continued to move higher against the US dollar, and it looks like our buying dips idea worked.
- Our yesterday’s highlighted bullish trend line on the hourly chart (data feed from Bitstamp) is acting as a support area for the bulls.
- The 100 hourly simple moving average is playing a major role for the price, and may continue to act as a barrier.
Bitcoin price attempted to move higher above $440, but failed. However, it is still above a few important support levels.
Bitcoin Price Buy Worked
I highlighted yesterday that there is a resistance area at $440, which may result in a minor dip in Bitcoin price. The price did move down and found support near a bullish trend line on the hourly chart (data feed from Bitstamp). If you bought and gained, then good job. Moving ahead, we need to keep a close eye on the same trend line and support area.
As long as the price is above it, there is a chance of one more push higher. The most important point is that the price is above the 100 hourly simple moving average (data feed from Bitstamp), and there is another minor support trend line formed on the same chart. Moreover, the 50% Fib retracement level of the last wave from the $422 low to $440.32 high is also supposed to act as a support area for the bulls.
On the upside, the most important resistance is around the $440 level. A break above it could put the price on a path for a test of $450.
Looking at the technical indicators:
Hourly MACD – The hourly MACD is in the bearish zone, which is a warning to the bulls.
RSI (Relative Strength Index) – The hourly RSI is below the 50 level, which is another bearish sign.
Intraday Support Level – $430
Intraday Resistance Level – $440
Charts from Bitstamp; hosted by Trading View