Key Points

Bitcoin price busted higher against the US Dollar and broke a major resistance at $900.

Yesterday’s highlighted bullish trend line on the hourly chart (data feed from SimpleFX) of BTC/USD was a perfect support and buy area.

The price corrected lower, tested the trend line and bounced back.

Bitcoin price continues to gain momentum against the US Dollar and traded past $900. Let us see if the BTC/USD pair can challenge $1000 or not.

Bitcoin Price Bullish Trend

There was no stopping Bitcoin price, as it busted higher against the US Dollar, and broke yet another important resistance at $900. Yesterday, we saw how the price traded above $800 and gained pace for a ride above $850. I highlighted the chances of a minor correction in BTC/USD yesterday. The price did correct a few points, and jumped sharply to gain pace.

The most important point was that yesterday’s highlighted bullish trend line on the hourly chart (data feed from SimpleFX) of BTC/USD acted as a good support. It provided bids, and helped the pair in gaining momentum one more time. The price traded higher and today went past another crucial resistance of $900. If the current momentum and pace continues, there is a chance that the pair may even test the $940 handle soon.

The same trend line support is still intact on the downside, and may provide support if the pair corrects lower towards $900 (data feed from SimpleFX), else $880 when we consider average of other brokers. An initial support on the downside is at 23.6% Fib retracement level of the last leg from the $865 low to $927 high. One may continue buying dips as long as the current market sentiment is intact.

Looking at the technical indicators:

Hourly MACD – The MACD is super bullish, and calling for further upsides.

Hourly RSI (Relative Strength Index) – The RSI is in the overbought levels, but with no sign of a correction.

Major Support Level – $900

Major Resistance Level – $940

Charts courtesy – SimpleFX