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- There is a key contracting triangle forming with support at $5600 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
- The pair is now placed well in the buyer’s area and looking for more gains above $5800 in the near term.
Bitcoin price remains is placed well above the $5500-5600 support against the US Dollar. BTC/USD might break the $5850 resistance for more upsides soon.
Bitcoin Price Buy Dips
There were decent gains in Bitcoin price above the $5400 level against the US Dollar. The price remained supported above $5500 and even attempted a break above $6000 once. However, sellers appeared and prevented gains above $6000. A high was formed at $5999 and the price started correcting lower. It has moved below the 38.2% Fib retracement level of the last wave from the $5362 low to $5999 high.
However, the downside move below $5500 seems to be limited. Buyers appeared near $5650 and the 50% Fib retracement level of the last wave from the $5362 low to $5999 high. More declines look limited by the $5600 and $5500 support levels. Moreover, the 100 simple moving average (H4) is also near the $5680 level to act as a short-term support. It seems like there is a key contracting triangle forming with support at $5600 on the 4-hours chart of BTC/USD.
The pair might trade in a range and inside the triangle above $5500 before the next move. A break and close above $5850 would open the doors for an upside drift toward the $6000 level. On the downside, the $5600 and $5500 levels are buy zones.
Looking at the technical indicators:
4-hours MACD – The MACD is now placed in the neutral zone.
4-hours RSI (Relative Strength Index) – The RSI is currently just below the 50 level.
Major Support Level – $5600
Major Resistance Level – $5850
Charts courtesy – SimpleFX