- Bitcoin price traded higher above the $415 resistance area and looks set for more gains in the near term.
- There is a bullish trend line formed on the hourly chart (data feed from Bitstamp), which acted as a support area on a couple of occasions.
- The price is just above the 100 hourly simple moving average, which means there is a chance of a minor upside.
Bitcoin price is with a positive tone in the short term, and if buyers remain in control, then a move towards $420 area is possible.
Bitcoin Price – Retest of $420?
Bitcoin price traded above a major resistance area of $415 recently, and traded as high as $420 where it found sellers. It traded lower once again and tested a bullish trend line formed on the hourly chart (data feed from Bitstamp). The price found bids near the highlighted trend line and support area at $410 and traded higher.
The price recovered and traded above the 100 simple moving average on the hourly timeframe, suggesting the bulls managed to defend the downside. The price is currently struggling to clear the 50% Fib retracement level of the last drop from the $422 high to $410 low. If the bulls stay in control, then there is a chance of it gaining traction and moving higher.
The next resistance in that situation may be around the 76.4% Fib retracement level of the last drop from the $422 high to $410 low. Any further gains could take the price back towards the last swing high of $422.
Looking at the technical indicators:
Hourly MACD – The hourly MACD may change the slope to the bullish zone, which is a positive sign.
RSI (Relative Strength Index) – The hourly RSI is around the oversold area, calling for a move higher.
Intraday Support Level – $410
Intraday Resistance Level – $418
Charts from Bitstamp; hosted by Trading View