TA: Bitcoin Regains Strength, But Break Above $13,700 Holds The Key
Bitcoin price is up over 3% and it gained strength from the $13,000 support against the US Dollar. BTC is now facing a heavy resistance near the $13,650 and $13,700 levels.
- Bitcoin remained well bid above the $13,000 level and it started a fresh increase.
- The price broke the $13,500 resistance and settled above the 100 hourly simple moving average.
- There is a connecting bullish trend line forming with support near $13,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair must settle above $13,650 and $13,700 to continue higher in the near term.
Bitcoin Price Starts Fresh Increase
Yesterday, we saw a sharp downside correction in bitcoin price below the $13,500 support level. BTC even broke the $13,200 support level and spiked below $13,000.
However, dips were limited below the $13,000 support and the price bounced back sharply. It broke the $13,200 and $13,380 levels to move back into a positive zone. There was also a break above the $13,500 resistance and the price settled nicely above the 100 hourly simple moving average.
Bitcoin is now facing a heavy resistance near the $13,650 and $13,700 levels. It already made two attempt to gain strength above $13,650, but failed.
The recent high was formed near $13,672 and the price is currently correcting lower. It broke the $13,500 level, plus traded below the 23.6% Fib retracement level of the upward move from the $13,976 swing low to $13,672 high.
Source: BTCUSD on TradingView.com
There is a major support forming on the downside near the $13,330 level and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the upward move from the $13,976 swing low to $13,672 high. There is also a connecting bullish trend line forming with support near $13,050 on the hourly chart of the BTC/USD pair.
On the upside, the bulls need to clear the $13,650 and $13,700 resistance levels to continue higher. In the stated case, the price could easily drift towards the $14,000 resistance.
Downside Break in BTC?
If bitcoin fails to clear the $13,650 and $13,700 resistance levels, there is a risk of a downside break. The first key support is near the $13,330 level and the 100 hourly SMA.
A downside break below the $13,330 level and the 100 hourly SMA could spark a fresh increase in selling. In the stated case, the bears may perhaps attempt a bearish break below the trend line and $13,000.
Hourly MACD – The MACD is slowly moving back into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still above the 50 level.
Major Support Levels – $13,330, followed by $13,000.
Major Resistance Levels – $13,650, $13,700 and $14,000.