Bitcoin price against the US Dollar is continuing its second-day rally after successfully moving above the crucial resistance at US$3,633. The on-going upward trend of Bitcoin (BTC) price also owes thanks to ex-IMF economist Mark Dow who recently closed his one-year-old short position on Bitcoin.
In fact, Spencer Bogart (Blockchain Capital partner) also said during an interview that it is an extremely good time to purchase Bitcoin. Reports say technical factors along with these favorable forecasts are further fuelling the rise of Bitcoin price against the US Dollar (BTC/USD).
Today’s Bitcoin Price Movement
Today BTC/USD opened at US$3780.8 and first reached at low at US$3756.0. However, the upward pull over the crucial support at US$3,633 led the Bitcoin price to rise to reach 1-day range high at US$3894.3. Currently, BTC price against USD is trading at US$3849.8.
Bitcoin Price: Technical Analysis
The price of Bitcoin is bouncing back and also breaking out of the falling wedge pattern in the short term. It looks like a pullback is working on the one-year long downward slide. Some analysts also believe that the BTC price’s trend reversal has already begun.
- The 61.8% Fibonacci retracement of the latest price movement from the recent high and low shows that it lines up with the former support around US$6000-6100.
- This trend line is in sync with the 200 Simple Moving Average dynamic inflection point. Some analysts believe it to be the line that indicates a pullback.
- In fact, the 100 Simple Moving Average dynamic inflection point is located close to the 38.2% Fibonacci retracement of the latest price movement from the high and low at US$5000 (which is also a strong psychological level).
- The least resistance path is located to the downside as 100 SMA is located below the 200 SMA.
- Buyers seem to be in control as indicated by the RSI.
- The stochastic indicator indicates that a pullout from the oversold region has started to take place.
Bitcoin price against the US Dollar has enough room to travel before the buyers get exhausted. The closing of the Bitcoin short position recently by former IMF economist Mark Dow may be indicative that a bounce-back of the Bitcoin price is around the corner.
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