Bitcoin Price Weekly Analysis – BTC/USD Further Gains Likely …

Key Points

  • Bitcoin price surged higher this past week versus the US Dollar to register a close above the $635 resistance.
  • There is a flag pattern forming on the 4-hours chart (data feed from SimpleFX) of BTC/USD, which may ignite another rally.
  • The price may break the recent high of $647 to challenge the $650 level moving ahead.

Bitcoin price is currently in a bullish trend against the US Dollar, and it looks like the BTC/USD pair may trade further higher this week.

Bitcoin Price Buy Dips

In the last weekly analysis, I stated that Bitcoin is a good buy on the dips against the US Dollar in the short term. It looks like the idea did work as BTC price managed to climb higher and registered a close above the $635 resistance. There was a nice upside move, which took Bitcoin price above a couple of important hurdles. There was a new weekly high posted at $647, and currently the price is consolidating.

There is a flag pattern forming on the 4-hours chart (data feed from SimpleFX) of BTC/USD. It may play a major role in the short term, and could spark yet another rally. On the downside, the 23.6% Fib retracement level of the last wave from the $611 low to $647 high is acting as a support along with the flag lower trend line. As long as the price is above it, there is a chance of a break higher.

Bitcoin Price Weekly AnalysisBitcoin Price Weekly Analysis

The next stop on the upside may be around the $650 level where the BTC sellers may try their best to prevent any additional gains. If at all, there is a downside break, then the 50% Fib retracement level of the last wave from the $611 low to $647 high may be tested.

Looking at the technical indicators:

4-hours MACD – The MACD is currently placed in the bullish zone, but slowly losing momentum.

4-hours RSI (Relative Strength Index) – The RSI is well above the 50 level, which is a positive sign.

Major Support Level – $635

Major Resistance Level – $650

 

Charts courtesy – SimpleFX

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

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