This past week, there was a steady rise in bitcoin price above the $13,500 resistance. BTC broke the $13,800 resistance and settled well above the 100 hourly simple moving average.
The price even spiked above the $14,000 resistance before starting a downside correction. There was a break below the $13,800 support level. The price also traded below the 50% Fib retracement level of the upward move from the $13,430 swing low to $14,076 high.
However, the price remained well bid above the $13,600 and $13,500 support levels. There is also a major bullish trend line forming with support near $13,580 on the hourly chart of the BTC/USD pair.
The trend line is close to the 61.8% Fib retracement level of the upward move from the $13,430 swing low to $14,076 high. The 100 hourly simple moving average is also following the trend line at $13,850.
As long as bitcoin price is above the trend line support and the 100 hourly SMA, it could start a fresh increase. On the upside, an initial resistance is near the $13,800 level. The main resistance is near the $14,000 level. A successful close above the $14,000 resistance could open the doors for a sharp rally towards $14,400 or even $14,500.
Downside Break in BTC?
If bitcoin fails to stay above the $13,600 and $13,580 support levels, there is a risk of a downside break. The first key support below the 100 hourly SMA is near the $13,500 level.
A downside break below the $13,500 level is likely to spark a fresh increase in selling. In the stated case, the bears may perhaps attempt a test of the $13,000 support level in the coming days.
Hourly MACD – The MACD is slowly moving in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.
Major Support Levels – $13,580, followed by $13,500.
Major Resistance Levels – $13,800, $13,880 and $14,000.