Bitcoin price is trading nicely above the $7,260 support area. BTC to USD seems to be setting up for a strong rally above the $7,460 and $7,500 resistance levels.
Key Takeaways: BTC/USD
- Bitcoin price is trading with a positive bias above the $7,260 support area against the US Dollar.
- BTC/USD is trading below the $7,430 resistance and insider a contracting triangle on the 2-hours chart (data feed from Bitstamp).
- Ethereum is still struggling to break the $148.50 and $151.80 resistance levels.
Bitcoin Price Analysis
Recently, there was a sharp decline in bitcoin price from the $7,770 swing high. BTC to USD traded below a few supports such as $7,510 and $7,460. The decline was such that the price dived below the $7,260 support.
Looking at the 2-hours chart, bitcoin even tagged the $7,120 support area and settled below the 50 simple moving average (2-hours, purple). However, the $7,120 support area acted as a strong buy zone.
As a result, the price started a fresh upward move above the $7,200 and $7,260 levels. Moreover, bitcoin price climbed back above $7,300 and the 50 simple moving average (2-hours, purple).
There was a close above the 23.6% Fib retracement level of the decline from $7,770 to $7,104. At the moment, the price is trading below the $7,430 resistance and insider a contracting triangle on the 2-hours chart.
The triangle resistance near the $7,430 is also close to the 50% Fib retracement level of the decline from $7,770 to $7,104. Therefore, an upside break above the $7,430 and $7,460 resistance levels could start another decent increase towards the $7,700 resistance area.
An intermediate resistance is near the $7,610 level since it is close to the 76.4% Fib retracement level of the decline from $7,770 to $7,104.
Conversely, the price could decline below the $7,280 and $7,220 support levels. In the mentioned case, bitcoin price may perhaps revisit the $7,120 support area. Any further losses could set the pace for a sharp decline below the $7,000 level in the near term.