Key Points

Bitcoin price dived yesterday against the US Dollar, but found support near the $405-03 levels.

BTCUSD is currently moving higher, and attempting to break a short-term resistance near $412.

There is a bullish trend line pattern formed on the hourly chart (data feed from Bitstamp), which can be seen as a support area for the bulls.

Bitcoin price broke down yesterday, but managed to hold the $405-00 support area. Now can it recover or challenge $420 once again?

Bitcoin Price – Buying favored

Bitcoin price broke a channel pattern, which was highlighted in yesterday’s post. However, as I kept saying the $405-00 support area is a major barrier for the bears. The price found support around the same area yesterday, and recovered. The price managed to clear the 38.2% Fib retracement level of the last drop from the $419 high to $403 low.

There is currently a bullish trend line formed on the hourly chart (data feed from Bitstamp), which may be seen as a buy zone it the price moves down one again. The best part is the fact that the price closed above the 100 hourly simple moving average, suggesting bids exceeded offers and pushed BTC higher.

Currently, the price is near the $412.-13 resistance area, so there is a chance of a minor dip before BTCUSD moves higher once again. Alternatively, if there is no dip and the price breaks the stated resistance area, then a move towards the 76.4% Fib retracement level of the last drop from the $419 high to $403 low is possible.

On the downside, the 100 hourly SMA and the trend line support are major hurdle for sellers in the near term.

Looking at the technical indicators:

Hourly MACD – The hourly MACD is in the bullish zone, calling for more upsides.

RSI (Relative Strength Index) – The RSI is above the 50 levels, which is a positive sign for the bulls.

Intraday Support Level – $408-407

Intraday Resistance Level – $412-413

Charts from Bitstamp; hosted by Trading View