- The Bitcoin price started the second wave higher after finding support around an important area of 220.0.
- There is a bullish trend line formed on the 4-hours chart, which is acting as a catalyst for an upside move.
Bitcoin price gained a lot of traction this past week, and it looks like buyers might able to take the price above 240.0.
Trend Line Support
The Bitcoin price traded with a positive tone this past week. In the second wave, the Bitcoin price found support near 220.0. The upside was sharp, and during the up-wave, there is a bullish trend line formed on the 4-hours chart. The best part is the fact that the price has settled above the 100 simple moving average, which is a positive sign and might push the price higher.
If the price moves lower or corrects lower from the current levels, then an initial support can be seen around the 23.6% Fib retracement level of the last wave from the 223.0 low to 240.00 high. The mentioned fib level is just above the trend line and support area. So, one can say that there is a monster hurdle forming for sellers near 235.00. A break below the trend line and support area could ignite a move towards the 100 MA. Any further losses should be limited and mat find bids near the 50% Fib level. On the extreme downside, the last swing low of 220.0 might come into play for rescue of buyers.
On the upside, the last swing high of 240.00 can be seen as a resistance area. A break above it could take the price towards 250.0.
Intraday Support Level – 235.00
Intraday Resistance Level – 240.00
The 4H RSI is above the 50 level, which is a positive sign for buyers moving ahead.
Charts courtesy of Trading View