Key Points

Bitcoin price continued to gain pace against the US Dollar and moved above the $1100 resistance.

The last week’s highlighted bullish trend line on the 4-hours chart (data feed from SimpleFX) of BTC/USD is still active with support at $1060.

The recent new high at $1194 was a nice move, and suggests more gains in the near term.

Bitcoin price grinded higher against the US dollar for a move towards $1200. More gains are possible going forwards in BTC/USD.

Bitcoin Price Buy Dips?

There was a solid buying interest for Bitcoin against the US Dollar, as the price moved past $1100. The BTC/USD pair was almost able to challenge the $1200, and traded as high as $1194 (data feed from SimpleFX). Once there was a break above the last swing high of $1114, the price gained pace and moved past $1180. Later, it found resistance near $1194 and started a correction.

During the dip, the price moved below the 23.6% Fib retracement level of the last wave from the $916 low $1194 high. However, the downside correction was strong, which pushed the price towards $1080 where it found support. The same level was also the 38.2% Fib retracement level of the last wave from the $916 low $1194 high. So, we can say it may have completed a correction pattern and could trade back towards $1150.

If there is an extension of the correction, the price might test the last week’s highlighted bullish trend line on the 4-hours chart at $1060. The 100 simple moving average (H4) is also positioned just below the trend line. Overall, it looks like the price is well supported on the downside, and buying dips near $1080 and $1060 might be considered.

Looking at the technical indicators:

4-hours MACD – The MACD is in the bullish zone, but slightly reducing the slope.

4-hours RSI (Relative Strength Index) – The RSI has corrected from the overbought levels, and testing the 50 level.

Major Support Level – $1060

Major Resistance Level – $1140

Charts courtesy – SimpleFX