BTCUSD Price Technical Analysis – Buy on Dips!

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BTCUSD Price Key Highlights

  • BTCUSD price made yet another strong surge yesterday, peaking at $377.20 before showing signs of a pullback.
  • Applying the Fibonacci retracement tool on the latest swing high and low shows the potential support zones in the event of a correction.

BTCUSD price could be in for a major correction to the rising trend line connecting the latest lows on the 4-hour time frame.

Area of Interest at $330

The 61.8% Fibonacci retracement level lines up with the rising trend line and a former short-term resistance level at $330. This could serve as the line in the sand in case profit-taking spurs a large selloff for BTCUSD price.

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Stochastic is already indicating overbought conditions, along with RSI, which means that buying pressure is about to fade sooner or later. Once these oscillators fall from the overbought zone, sellers could hop in and trigger a pullback.

The 100 SMA is above the 200 SMA, indicating that the longer-term climb is likely to carry on. Short-term traders could hop in the corrective wave and aim for $330 while long-term trend-followers could wait for reversal candlesticks to form at any of the Fib levels before going long.

Intraday support level – $330

Intraday resistance level – $400

Charts from TradingView