- In the previous weekly analysis, we highlighted the importance of a critical support area at 200.00, which as anticipated acted as a barrier for sellers.
- The price has somehow managed to close above the 100 hourly simple moving average, which is a positive sign.
Bitcoin price after a major decline managed to gain buyers around a major support area of 200.0.
As mentioned, we anticipated the 200.00 support area to act as a major barrier for sellers in the near term. This past week there was a sharp upside reaction after the price declined towards the 200.0 level. The best part is the fact that the buyers managed to clear the 38.2% Fib retracement level of the last decline from the 268.00 high to 197.95 low. Another positive sign is that price is just above the 100 hourly simple moving average.
After a substantial surge higher, there was a consolidation phase initiated around the 230.0 area. There is a major resistance around the mentioned level, as the 50% Fib retracement level is aligned around it. If buyers manage to break the same and take the price higher, then the next level of interest could be around the 61.8% Fib level.
There are many positive signs aligned for buyers, as the hourly RSI is above the 50 level. The most important one is the inverse head and shoulders formation on the hourly chart. If the highlighted pattern is true and buyers manage to clear the neckline resistance area, then there is a possibility of the price trading towards 280.0.
On the downside, a short-term support area can be seen around the 220.0 where buyers might appear, followed by the all-important 200.00 level.
Intraday Support Level – 220.00
Intraday Resistance Level – 235.00
In short, as long as the price is above the 100 SMA, it might continue trading higher.
Charts courtesy of Trading View