- Bitcoin price recovered well this past week and spiked higher to trade near ¥2360-70.
- There is an ascending channel pattern formed on the daily chart (price feed from BTCChina), which may act as a catalyst in the near term.
- Moreover, there is a bullish trend line formed on the hourly chart that can be seen as a buying area (price feed from Huobi).
Bitcoin price gained this past week and traded above a major resistance area of ¥2300 to setup for more gains moving ahead.
What’s next for Bitcoin Price?
There was a decent upside ride this past week in Bitcoin price, as it spiked higher to clear a couple of important resistance areas. The price recovered well after declining close to ¥1800, and currently looks set for more upsides. There is a bullish trend line formed on the hourly chart (price feed from BTCChina), which prevented the downside move on a couple of times, and may act as a mover for the upside break.
The highlighted trend line is coinciding with the 38.2% Fib retracement level of the last leg from the ¥2160 low to ¥2365 high. The stated level is also already tested once, so we can say that a short-term correction is likely over and the price may continue to move higher. Only a break below the trend line and support area could take the price lower may be towards the 100 hourly simple moving average.
Looking at the daily chart of BTCCNY (price feed from Huobi), there is a nice bullish pattern forming in the form of an ascending channel. The price is closing in towards the channel resistance trend line and finding offers. There is already a test of the channel resistance area, but buyers failed to break it. The highlighted channel resistance area is colliding with the 38.2% Fib retracement level of the last drop from the ¥3350 high to ¥1802 low.
So, a break above the channel resistance area is needed if buyers have to take the price higher and gain pace for more gains.
Looking at the indicators:
Daily MACD – The MACD is in the bullish zone and suggesting a solid upside move in the price.
Daily RSI (Relative Strength Index) – The Daily RSI is above the 50 level, suggesting the price is in the bullish zone.
On the downside, the channel support trend line may continue to stall gains and prevent any additional losses.
Intraday Support Level – ¥2280
Intraday Resistance Level – ¥2365
Charts from BTCChina and Huobi; hosted by Trading View