Key Points
1: Bitcoin price is recovering and is currently placed nicely above the $15,000 level against the US Dollar.
2: There was a break above a key bearish trend line with resistance at $14,100 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
3: On the downside, there is a connecting bullish trend line forming with support at $15,800 on the same chart.
Bitcoin Price Rise
We saw a decent support base formed in bitcoin price around the $12,000 level against the US Dollar. The price started a nice upside move and managed to move above the $13,000 and $14,000 resistance levels. During the upside move, the price also moved above the $15,000 level and the 100 simple moving average (4-hours). Moreover, there was a break above a key bearish trend line with resistance at $14,100 on the 4-hours chart of BTC/USD.
It opened the gates for more gains and the price was able to move above the $15,000 and $16,000 levels. A high was formed recently at $17,048 from where the price may correct a few points lower. An initial support on the downside is around the 38.2% Fib retracement level of the last wave from the $14,040 low to $17,048 high. Moreover, there is a connecting bullish trend line forming with support at $15,800 on the same chart.
The trend line support is near the 50% Fib retracement level of the last wave from the $14,040 low to $17,048 high. Therefore, if the price corrects lower, it is likely to find support above $15,500. The overall trend is positive for BTC and the price is likely to move further higher above $17,000.
Looking at the technical indicators:
4-hours MACD – The MACD is placed nicely in the bearish slope.
4-hours RSI (Relative Strength Index) – The RSI is moving lower towards the 55 level.
Major Support Level – $15,800
Major Resistance Level – $17,000