- Bitcoin price this past week traded as high as $460 before finding sellers around the stated level.
- The price is currently moving lower and heading towards a major support area at $439 if we looks at the 2-hours chart via the data feed from Bitstamp.
- There is also a major triangle pattern formed if we consider a higher timeframe like the daily chart with the data feed from
Bitcoin price may be heading towards a crucial support area of $444, which can be considered as a buy area in the near term.
Bitcoin price this past week surged higher and traded near $460 where sellers appeared to defend more gains. The price after a failure to break the stated level started correcting lower. It already moved down and tested the 50% Fib retracement level of the last wave from the $26 low to $460 high. Let us see whether the 50% Fib level can protect a downside break or not. However, there is a major support forming near the 61.8% Fib retracement level of the last wave from the $426 low to $460 high, which is coinciding with the 100 simple moving average (H2).
Moreover, there is a bullish trend line formed as well on the 2-hours chart via the data feed from Bitstamp. The highlighted trend line acted as a barrier for sellers on many occasions. So, if the 100 simple moving average (H2) fails to hold, then the trend line and support area may come into play. Overall, looking at the 2-hours chart, we can say that buying dips may be a good idea. The 2-hours RSI is around the oversold readings, which means there is a chance of buyers appearing and defending more losses.
Let’s look at the Daily timeframe chart via the data feed from Bitstamp. There is a contracting triangle pattern formed on the daily chart, which may act as a mover for the next leg. We can see this pattern as a consolidating pattern after the recent surge. The price below closing the week traded just around the triangle resistance trend line. If buyers manage to take the price above the triangle resistance trend line, then a move towards the last swing high of $479 is possible. In that situation, there is a chance that the price may move towards the all-important $500 level as well.
On the other hand, if the price corrects lower, then an initial support can be around the triangle lower trend line. It is also coinciding with the 23.6% Fib retracement level of the last wave from the $313 low to $479 high. A break below the triangle support area may take the price down and a test of the 38.2% % Fib retracement level of the last wave from the $313 low to $479 high is also possible.
Looking at the indicators:
Daily MACD – The daily MACD is in the bullish zone, which means the price may trade higher moving ahead.
RSI (Relative Strength Index) – The daily RSI is above the 50 level, which is a bullish sign.
Intraday Support Level – $440
Intraday Resistance Level – $455
Charts from HitBTC and Bitstamp; hosted by Trading View