Bitcoin Price Watch: BTC/USD Signaling Bullish Reversal

Key Points

• Bitcoin price formed a strong base around $7,050 and moved higher against the US Dollar.
• This week’s followed important bearish trend line with resistance at $7,320 was breached on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair is now placed nicely above the $7,400 level and the 100 hourly simple moving average.

Bitcoin price is back in action above $7,400 against the US Dollar. BTC/USD is showing positive signs above 100 SMA and is facing a key barrier near $7,500-7,600.

Bitcoin Price Analysis

The past few sessions were positive in bitcoin price as it moved above the $7,300 resistance against the US Dollar. The BTC/USD pair formed a support base at $7,050 and started a sharp upside move. It broke the 50% Fib retracement level of the last drop from the $7,450 high to $7,048 low to start the rally. Later, buyers succeeded in pushing the price above a major hurdle at $7,250.

It opened the doors for more gains and this week’s followed important bearish trend line with resistance at $7,320 was breached on the hourly chart of the BTC/USD pair. The pair settled above the $7,400 resistance and the 100 hourly simple moving average. At the moment, the price is trading near the 50% Fib retracement level of the last decline from the $7,936 high to $7,048. Buyers must push the price above the $7,500 and $7,600 resistance levels to more gains in the near term. The $7,600 level is the 61.8% Fib retracement level of the last decline from the $7,936 high to $7,048.

Looking at the chart, if the price breaks the $7,600 barrier, it could easily rally towards the $8,000 level. On the downside, the broken resistance at $7,300 and the 100 hourly SMA are likely to act as supports.

Looking at the technical indicators:              

Hourly MACD – The MACD for BTC/USD is about to move in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI is currently placed nicely near the 60 level.

Major Support Level – $7,300

Major Resistance Level – $7,600