Bitcoin Price Technical Analysis For 03/29/2016 – Buying Dips Worked

Key Points

  • Bitcoin price continued to move higher against the US Dollar, and my buy dips idea highlighted in yesterday’s post worked perfectly.
  • The price cleared a bearish trend line formed on the hourly chart (data feed from Bitstamp), and looks set for more gains.
  • The price almost reached $425, which is a resistance area and I think it’s time to book profits if you are in a trade.

Bitcoin price moved higher after a minor correction as forecasted. Read more how BTC/USD can trade from the current levels.

Bitcoin Price is all Bullish?

Bitcoin price surged higher and after a minor correction managed to gain bids for another upside move. I highlighted a plan of buying dips yesterday, which worked perfectly, and now I think it is time to book profits as BTC/USD is heading towards a major resistance area and it is not worth the risk.

The price stayed above a major bullish trend line formed on the hourly chart (data feed from Bitstamp), and also managed to break a minor bearish trend line on the same chart. BTC to USD almost tested the 50% Fib retracement level of the last wave of the $412 low to $427 high and started to move higher.

Bitcoin Price Technical Analysis

Bitcoin Price Technical Analysis

BTC/USD may be heading back towards the $427 high, but the bulls need to be careful, as there is a convergence forming. I think the best idea is to stay away for a couple of sessions, and wait for the price to stabilize, then we can analyze further. On the downside, the $420 level remains a major support area for the BTC in the short term.

Looking at the technical indicators:

Hourly MACD – The hourly MACD is in the bullish slope, suggesting buyer’s strength.

RSI (Relative Strength Index) – The RSI is positioned well above the 50 levels, which is a bullish sign.

Intraday Support Level – $420

Intraday Resistance Level – $425

 

Charts from Bitstamp; hosted by Trading View

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