Key Points
- Bitcoin price traded further higher and created a new high Intraday, as it traded above $420.
- However, the upside was limited in Bitcoin price, and it looks like the bulls are exhausted.
- The support trend line (hourly chart and data feed from Bitstamp) as highlighted yesterday is at risk of a break in the short term.
Bitcoin price traded a few points higher above the $420 resistance area, but there are a few bearish signs starting to emerge on the hourly chart.
Bitcoin Price- Break Likely?
Bitcoin price as highlighted yesterday gained, and the upside was extended further. The price managed to clear the last swing high of $420 and traded as high as $424.80 where it found sellers. The price is currently moving down, and the most important point to note is the fact that it is testing a critical support trend line formed on the hourly chart (data feed from Bitstamp).
The highlighted trend line and support area is coinciding with the 23.6% Fib retracement level of the last leg from the $404 low to $424.80 high. So, it holds a lot of importance, and a break below the trend line support may give a reason to sellers to take the price down in the short term. The next immediate support on the downside in that situation may be around the 50% Fib retracement level of the last leg from the $404 low to $424.80 high.
However, the most important support is around the 100 simple moving average since it is around the $408 level, which was a resistance earlier and can act as a support looking ahead.
Looking at the technical indicators:
Hourly MACD – The hourly MACD is under a minor convergence, which is not a good sign for the bulls.
RSI (Relative Strength Index) – The hourly RSI is above the 50 level, and showing no signs of a down move.
Intraday Support Level – $418
Intraday Resistance Level – $425
Charts from Bitstamp; hosted by Trading View
