Key Points

Bitcoin price is trading in the bullish zone above the $5600 support against the US Dollar.

There is a key contracting triangle forming with support at $5600 on the 4-hours chart of BTC/USD (data feed from SimpleFX).

The pair is now placed well in the buyer’s area and looking for more gains above $5800 in the near term.

Bitcoin price remains is placed well above the $5500-5600 support against the US Dollar. BTC/USD might break the $5850 resistance for more upsides soon.

Bitcoin Price Buy Dips

There were decent gains in Bitcoin price above the $5400 level against the US Dollar. The price remained supported above $5500 and even attempted a break above $6000 once. However, sellers appeared and prevented gains above $6000. A high was formed at $5999 and the price started correcting lower. It has moved below the 38.2% Fib retracement level of the last wave from the $5362 low to $5999 high.

However, the downside move below $5500 seems to be limited. Buyers appeared near $5650 and the 50% Fib retracement level of the last wave from the $5362 low to $5999 high. More declines look limited by the $5600 and $5500 support levels. Moreover, the 100 simple moving average (H4) is also near the $5680 level to act as a short-term support. It seems like there is a key contracting triangle forming with support at $5600 on the 4-hours chart of BTC/USD.

The pair might trade in a range and inside the triangle above $5500 before the next move. A break and close above $5850 would open the doors for an upside drift toward the $6000 level. On the downside, the $5600 and $5500 levels are buy zones.

Looking at the technical indicators:

4-hours MACD – The MACD is now placed in the neutral zone.

4-hours RSI (Relative Strength Index) – The RSI is currently just below the 50 level.

Major Support Level – $5600

Major Resistance Level – $5850

Charts courtesy – SimpleFX