Bitcoin price is currently trading near a major support above $4250 against the US Dollar. If BTC/USD holds $4250, it might soon resume its upside move.
- Bitcoin price is still in the bullish trend above the $4000 handle against the US Dollar.
- There is a monster bullish trend line forming with support at $4250 on the 2-hour chart of BTC/USD.
- As long as the pair is above $4250, it remains in an uptrend.
Bitcoin Price Chart Analysis
There was a nice upside move in Bitcoin price above $4400 recently against the US Dollar. The price traded as high as $4471 before finding offers.
A correction wave was initiated from the $4471 swing high and the price moved below the 23.8% Fibonacci retracement level of the last wave from the $4020 low to $4471 high.
The downside move was such that the price even broke the $4300 support and the 38.2% Fibonacci retracement level of the last wave from the $4020 low to $4471 high.
However, the downside move was protected by the $4250 support zone. There is a crucial bullish trend line forming with support at $4250 on the 2-hour chart of BTC/USD (data feed of Kraken exchange).
Moreover, the 50% Fibonacci retracement level of the last leg from the $4020 low to $4471 high also acted as a strong support.
In the monthly outlook, I mentioned that BTC/USD remains in major uptrend considering the $2950 support on the weekly chart. It still is in the uptrend and the current 2-hour trend line is for the current wave above $4000.
If the trend line support holds the downside move below $4250, there is chance of Bitcoin price recovering and moving back above $4300.
On the upside, a break above the $4350 level and a connecting bearish trend line is needed for the price to gain momentum.
Buying as long as the price is above $4350 can be considered, but with a stop on a close below the trend line.
Trade safe traders and enjoy the ride!!!