Bitcoin Price Technical Analysis For 03/24/2016 – Beginning of Bullish Trend? – The Basics about Cryptocurrency

  • Bitcoin price gained bids intraday and traded higher to settle above the $415 resistance area.
  • The price is currently facing a major hurdle near the all-important $420 resistance area.
  • There are many support areas formed on the downside on the hourly chart of the BTCUSD pair (data feed from Bitstamp).

Bitcoin price gained intraday to trade near $418-420. Now, can BTCUSD continue trading higher as there are many supports formed on the downside?

Bitcoin Price – Trend Lines Support

Bitcoin price showed a lot of positive signs during the past few hours, and if we look at the short-term view, then BCTUSD was all bullish. However, can we consider it a change in the trend from bearish to bullish? Only time can tell, but looking at the higher timeframe chart, the price is still below a monster resistance area of $420-425. The stated level holds a lot of importance for the next major move in BTCUSD and could ignite a lot of volatility.

In the short term, Bitcoin price has formed many support levels against the USD. BTC sellers are likely to face a tough time, as there are a couple of bullish trend lines formed on the hourly chart of the BTCUSD pair (data feed from Bitstamp).

Moreover, the price is also above the 100 hourly simple moving average, which is a positive sign. A break below the first trend line support may call for a test of the 38.2% Fib retracement level of the last leg from the $403 low to $418 high. One might consider buying dips, but only if it’s a short term call. The most important support is around $410, followed by $405. Careful trading is suggested for BTCUSD in the short term as long as it is range trading.

Looking at the technical indicators:

Hourly MACD – The hourly is back in the bearish zone, which is a convergence sign for the bulls.

RSI (Relative Strength Index) – The RSI is above the 50 levels, suggesting the price gained strength recently.

Intraday Support Level – $410

Intraday Resistance Level – $420

Charts from Bitstamp; hosted by Trading View