Analysis: Bitcoin (BTC) Price Correction Approaching Significant Support

Bitcoin cost amended lower as of late and exchanged beneath $5,500 and $5,480 against the US Dollar. The cost exchanged near the $5,370 level and it is as of now exchanging with a bearish predisposition. There is a key bullish pattern line shaped with help at $5,405 on the hourly diagram of the BTC/USD pair (information feed from Kraken).

The pair could broaden misfortunes towards the $5,340 support before it could skip back. Bitcoin cost began a noteworthy drawback revision underneath $5,450 against the US Dollar. BTC may test the key $5,340-5,350 help zone before it could begin a crisp increment. So the question is should you invest in bitcoin or not?

Bitcoin Price Analysis

After a solid upward move, bitcoin cost began a drawback rectification from the $5,640 swing high against the US Dollar. The BTC/USD pair exchanged beneath the $5,600 and $5,520 levels to move into a momentary bearish zone. The pair even broke the $5,480 support and settled beneath the key $5,450 bolster level. As of late, there was a break underneath the half Fib retracement dimension of the last wave from the $5,199 low to $5,644 high.

The cost spiked beneath the $5,400 support and exchanged near the $5,370 level. Additionally, the cost exchanged near the 61.8% Fib retracement dimension of the last wave from the $5,199 low to $5,644 high. Right now, the cost is merging over the $5,400 level and the 100 hourly basic moving normal.

There is additionally a key bullish pattern line shaped with help at $5,405 on the hourly outline of the BTC/USD pair. Obviously, the cost is exchanging almost a solid help at $5,400. On the off chance that there is a drawback break underneath $5,400 and the 100 hourly SMA, the cost could expand misfortunes.

The following key help territory is close $5,350-5,340 (the past real obstruction). The bulls are probably going to guard the $5,340 bolster zone in the close term. On the upside, the cost must break the $5,450 protection from begin a better than average bounce back. Not with standing, the primary obstruction is at $5,500, above which the cost could move back towards the $5,640 level.

Bitcoin Price Analysis BTC Chart

Taking a gander at the graph, bitcoin value is by all accounts expanding its decay towards the $5,350 level. Nonetheless, it won’t be simple for dealers to clear the $5,340-5,350 help territory. When the present revision is finished, the cost is probably going to skip back in the close term. Further beneath $5,340, the cost may move into a bearish zone towards the $5,000 handle.

Specialized Markers:

• Hourly MACD – The MACD is attempting to pick up pace in the bullish zone.
• Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is presently well underneath the 50 level and it could slide towards 35 or 30.
• Real Support Levels – $5,400 pursued by $5,340.
• Real Resistance Levels – $5,450, $5,500 and $5,540

Source: Newsbtc