BTCUSD Finds Support at Trend Line and SMA
Bitcoin price has been sold off aggressively for the past week. BTCUSD caught a break yesterday when it closed higher than its opening price for the first time in four trading days. Yesterday’s candle even closed as a spinning top. On its own, this candle is considered as a neutral indicator. However, because it formed on a confluence of support, this suggests that buyers could be priming to push bitcoin price higher. The 200 SMA and rising trend line coincide nicely at 8,790.00 where the spinning top formed. A close above yesterday’s high at 8,972.92 could confirm this assumption. If it happens, we could see BTCUSD soon rally to its February 13 highs above 10,300.00.
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Is There More Room for Bitcoin Price to Trade Lower?
On the other hand, the 4-hour time frame presents a more bearish setup. Bitcoin price has recently consolidated following its drastic drop. Consequently, a bearish flag pattern formed. This chart pattern is a bearish continuation pattern and a drop below yesterday’s low at 8,520.00 could indicate that BTCUSD may still trade lower. Near-term support is at 8,273.00 where bitcoin price previously made lows on January 25 and the 100 SMA seems to fall.
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