Bitcoin Price Analysis: Is This Real Bullish Break In BTC?

Published October 24, 2018 | Updated October 24, 2018

Bitcoin Price Analysis: Is This Real Bullish Break In BTC?

Bitcoin price slowly and steadily climbed from the $6,355 support against the US Dollar. BTC/USD broke the $6,420 resistance to move into a short term bullish zone.

Important points

  • Bitcoin price remained well supported above the $6,355 pivot area.
  • BTC/USD broke a connecting bearish trend line with resistance at $6,420 on the 2-hours chart.
  • BTC price must break the range resistance at $6,490 to climb further higher.

Bitcoin price analysis

After a brief consolidation above the $6,355 support level, bitcoin price started an upward move against the US Dollar. BTC/USDT gained traction above the $6,380 and $6,400 levels to stage a decent trend towards $6,450.

The 2-hour chart indicates that the price traded above the $6,420 resistance and the 100 simple moving average (2-hours), opening the doors for more gains.

bitcoin
Chart sourced by TradingView, Bitstamp

Buyers were successful in clearing a connecting bearish trend line with resistance at $6,420 on the same chart. However, there was no gain in momentum above the 23.6% Fib retracement level of the last decline from the $6,755 high to $6,355 low.

More importantly, the range resistance near the $6,490 is still intact. Buyers need to clear the 23.6% Fib level and the $6,490 range resistance to moving further higher.

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If they succeed in pushing the price above the $6,490 resistance, bitcoin could move towards the 6,555 resistance. It represents the 50% Fib retracement level of the last decline from the $6,755 high to $6,355 low.

On the other hand, if there is a downside correction, the broken hurdle near the $6,420 level and the 100 SMA are likely to act as solid supports. Below $6,420, the pair may perhaps decline towards the range support at $6,355.

Below the range support, there is a connecting bullish trend line with support at $6,320 on the same chart. The current price action is slightly positive as long as bitcoin is trading above the $6,420 level and the 100 SMA.

The next move in BTC/USD depends whether the price gains traction above the $6,490 resistance in the near term. The main hurdles above $6,490 are at $6,555 and $6,600.

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Latika Mehrotra 71 Articles
Passionate about technology and science. Pursuing Doctorate in the field of Data Mining, Professor by profession and loves writing interesting articles about Cryptocurrencies, bitcoin, Ethereum, ripple, Forex and commodities. Reach out to her [email protected]
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