- The Bitcoin price after finding bids around the 200.00 level traded higher and breached an important resistance area.
- A bearish trend line was broken, which might ignite more gains in the near term.
Bitcoin price is showing positive signs of a bullish break, which could push it higher moving ahead.
Trend Line Break
The Bitcoin price found support recently around the 200.00 level, as sellers failed to take the price below the mentioned level. Buyers gained traction and managed to take the price higher. There was a bearish trend line formed on the hourly chart of the Bitcoin price, which was breached by buyers to clear the way for more upsides in the short term. In the recent wave the price once tested the 50% Fib retracement level of the last leg from the 200.0 low to 246.23 high. So, we might consider it as a completion of a corrective phase.
However, there are a few concerning signs as well for buyers, as the price is struggling to clear the 100 hourly simple moving average. As long as the price is trading below the 100 hourly MA, there is a risk that the recent trend line break is a false one.
If the price manages to settle above the 100 hourly MA, then the price might surge higher in the near term. The next level of interest in that situation could be around the last swing high of 246.00. Any further gains might be limited around the all-important 250.00 level.
On the downside, the broken trend line might act as a support in the near term.
Intraday Support Level – 232.00
Intraday Resistance Level – 250.00
The hourly RSI is above the 50 level, which is a positive sign and might help the price to gain bids.
Charts courtesy of Trading View