BTCUSD Price Key Highlights
- BTCUSD price has been on the decline since the start of the month, following its sudden rally to the $500 mark.
- A descending trend line can be drawn to connect the latest highs of bitcoin price action on the 1-hour time frame.
BTCUSD price appears to be making a correction from its latest slide, and the Fibonacci retracement levels line up with the descending trend line.
Potential Resistance at $350
The 100 SMA recently crossed below the 200 SMA, favoring a downside break from the triangle consolidation pattern noted earlier. Applying the Fib tool on the breakout move shows that the 50% level coincides with the descending trend line while the 61.8% level lines up with the broken triangle support.
With that, BTCUSD price could encounter resistance at the $350 level on this particular pullback. If that area keeps gains in check, the selloff could resume and take price down to the previous lows $300.
Stochastic is moving up, confirming that BTCUSD price is still in correction mode. RSI is also heading north, which indicates that price might follow suit. For now, the latter is still on middle ground so there’s plenty of space for near-term gains. A higher pullback to the 100 SMA dynamic resistance might also be possible.
If bulls start charging again, though, bitcoin could make another attempt to break past the trend line and Fib levels. The $350 resistance level could be the line in the sand for any retracements, as a break above that area could signal that a reversal is in order.
Meanwhile, a continuation of the downtrend and a pickup in bearish pressure could spur a break below the $300 mark onto new lows for BTCUSD price, possibly until the $270 areas once more.
Intraday support level – $300
Intraday resistance level – $300
Technical Indicators Settings:
- 100 SMA and 200 SMA
- Stochastic (8, 3, 3)
- RSI (14)
Charts from BitStamp, courtesy of TradingView