- Bitcoin price climbed higher sharply and traded above 250.00 before finding sellers.
- The price is currently correcting lower and heading towards an important support area.
There was a nice bullish ride during this past week, as the Bitcoin price traded as high as 257.00 where sellers stepped in to prevent further gains. There is a critical bullish trend line formed on the 4-hours chart, which is likely to act as a barrier for sellers if the price moves lower from the current levels. The price closed around the 38.2% Fib retracement level of the last wave from the 219.00 low to 257.00 high, which is also coinciding with the Lower Bollinger Band. There is a chance of a spike lower towards the highlighted bullish trend line, i.e. positioned with the 50% Fib retracement level. So, there is a major support forming around 240.00 where buyers might put up a fight.
Trend Line Break
A break below the highlighted trend line could ignite more losses in the near future. However, there is one more support building around 100 simple moving average (4-hours). There are a couple of bearish signs emerging on the 4-hours chart, including the fact that the RSI is below the 50 level. Plus, the MACD has changed the slope to bearish to help sellers moving ahead.
Let us see how the price behaves in the coming days, as there is a major support around 240.00 but at the same time there are a few negative signals emerging.
Intraday Support Level – 240.00
Intraday Resistance Level – 250.00
If the price find bids and trades higher, then an initial hurdle can be seen around 248.00, which is positioned with the Middle Bollinger Band. A break above the same might take the price towards the last swing high of 257.00.
Charts courtesy of Trading View