- Bitcoin price remained in an uptrend against the US Dollar, and traded above the $750 resistance.
- There is a major bullish trend line formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD, acting as a support area.
- If the price corrects lower, it may find buyers near the $750-40 levels.
Bitcoin price continued to gain strength against the US Dollar, and it looks like BTC/USD remains a good buy if it dips or corrects lower.
Bitcoin Price Major Support and Buy Area
There were continuous gains in Bitcoin price against the US Dollar, as it broke a couple of important resistances to set the pace for more gains. The most important close was above the $750 level, which may now act as a support if the price corrects lower. Recently, the price traded as high as $786 (BTC/USD and data feed from SimpleFX), and currently consolidating gains.
It already tested the 23.6% Fib retracement level of the last wave from the $684 low to $786 high, and found support. As can be clearly seen in the chart, there is a crucial support and buy area formed at $750. There is also a bullish trend line on the same chart, acting as a barrier for sellers. So, it is very likely that the price may consolidate for some time above the trend line support area and then trade further higher.
A retest of the last swing high of $786 is possible, and if there is an increase in the momentum, the price might even test the $800 handle. The 100 simple moving average on the 4-hours chart is heading north and signaling more upsides in the near term.
Looking at the technical indicators:
4-hours MACD – The MACD is strongly placed in the bullish zone, and pointing buyer’s strength.
4-hours RSI (Relative Strength Index) – The RSI has corrected from the overbought levels, and remains supported.
Major Support Level – $750
Major Resistance Level – $785
Charts courtesy – SimpleFX
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