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Bitcoin price remained well bid above $13,300 and started a fresh increase against the US Dollar. BTC is back above $13,700 and it is likely to continue higher in the near term.
- Bitcoin started a fresh upward move after it found a strong support near $13,300.
- The price is now trading well above $13,600 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $13,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is consolidating gains above the 100 hourly SMA and it could climb again above $13,800.
Bitcoin Price is Showing Positive Signs
After retesting the $13,300 support zone, bitcoin price started a fresh increase. There was a steady rise above the $13,500 and $13,600 resistance levels. BTC even surged above $13,800 and settled above the 100 hourly simple moving average.
There was also a break above a major bearish trend line with resistance near $13,700 on the hourly chart of the BTC/USD pair. Finally, there was a spike above the $14,000 resistance. A high is formed near $14,065 and the price is currently correcting gains.
It broke the $13,800 level, and traded below the 23.6% Fib retracement level of the recent increase from the $13,306 swing low to $14,065 high.
Source: BTCUSD on TradingView.com
The bulls are now defending the $13,700 zone and the 100 hourly simple moving average. The 50% Fib retracement level of the recent increase from the $13,306 swing low to $14,065 high is also near the $13,685 level to act as a strong support.
On the upside, the $13,880 level is an initial resistance. A clear break above $13,880 and then a follow up move above the $14,000 resistance could increase the chances of a sharp rise towards the $14,500 level in the coming sessions.
Fresh Decline in BTC?
If bitcoin fails to regain strength above $13,880, there is a risk of a fresh decline. The first major support on the downside is near the $13,680 level and the 100 hourly SMA.
A downside break below the $13,680 level and the 100 hourly SMA may possibly start another decline towards the $13,400 and $13,300 levels in the near term.
Hourly MACD – The MACD is slowly losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still well above the 50 level.
Major Support Levels – $13,680, followed by $13,500.
Major Resistance Levels – $13,880, $14,000 and $14,500.
Image Credit: Refer to Source
Author: Refer to Source Aayush Jindal