HomeBitcoin ChartsBitcoin Price Technical Analysis – Buying Worked, Buy More?

Bitcoin Price Technical Analysis – Buying Worked, Buy More?

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Key Points

  • Bitcoin price continued to trade higher, and our buying dips idea worked well as forecasted in yesterday’s post.
  • The price reached our buy target of the $420 level, and currently correcting and consolidating gains.
  • There is a support trend line formed on the hourly chart (data feed from Bitstamp), which may continue to serve as a support area.

Bitcoin price moved further higher Intraday, and now is looks like there is a chance of a minor correction in the near term.

Bitcoin Price- Wait for a correction?

Bitcoin price managed to clear the $408 level recently, which was highlighted as an important level for both buyers and sellers yesterday. After breaking the stated level, the price moved towards the $420 level, which was the next area of interest and our first buy target. The price traded as high as $421.09 where it found sellers and started to correct down.

The price moved down and tested the 50% Fib retracement level of the last leg from the $404 low to $421 high. Buyers appeared around the stated fib level and pushed the price back higher. There is also a support trend line formed on the hourly chart (data feed from Bitstamp), which acted as a buy zone for buyers.

The price looks like may be heading towards the recent high of $421 once more, but buyers need to be very careful, as this may not be the right time to enter a long trade. As long as the price below the stated level, there is a chance of a minor correction.

So, either we can wait for a correction to enter a buy trade or enter a buy trade if the price breaks above the recent high and closes above it. The price is well above the 100 simple moving average, which is a positive sign.

Looking at the technical indicators:

Hourly MACD – The hourly MACD is about to change the slope to bullish, which is a positive sign.

RSI (Relative Strength Index) – The hourly RSI is above the 50 level, calling for more gains.

Intraday Support Level – $400

Intraday Resistance Level – $408

Charts from Bitstamp; hosted by Trading View

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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