- Bitcoin price is forming an interesting bullish structure, which is pointing towards more gains in the near term.
- There is a support trend line formed on the 4-hours chart (data feed from HitBTC), which may act as a catalyst for an upside move.
- A short term breakout pattern (triangle) is forming on the hourly chart (data feed from Bitstamp).
Bitcoin price looks set for an upside move may be above $500 if buyers remain in control, and if the price stays above a support trend line on H4.
Bitcoin price after trading towards $300 started a new bullish trend, and looking at the current 4-hours chart there are enough reasons for the bulls to push the price above $500. There is a major bullish trend line formed on the 4-hours chart (data feed from HitBTC), suggesting that sellers are struggling to take the price down.
The price has already crossed the 76.4% Fib retracement level of the last drop from the $518 high to $312 low once. So, there is a high probability of it trading back towards the last swing high, which is $518. The 4H RSI is well supported and above the 50 level, which is a positive sign.
Looking at the data feed from Bitstamp, the price is still trading in a strong uptrend inside its ascending triangle pattern on 1-hour chart. If the price manages to clear the triangle resistance area, then it could be considered as an early for a move towards $500. Buyers need to also break the 61.8% Fib retracement level of the last drop from the $467 high to $403 low.
Looking at the indicators:
MA – The 100 hourly simple moving average (SMA) is perfectly aligned with the highlighted support trend line, pointing it as a buy area.
RSI (Relative Strength Index) – The hourly RSI is above the 50 level, which is a bullish sign.
Intraday Support Level – $430
Intraday Resistance Level – $450
Charts from HitBTC and Bitstamp; hosted by Trading View