- Bitcoin price enjoyed a nice bullish ride this past week against the US Dollar, and may continue to trade higher.
- There is a monster contracting triangle pattern formed on the 4-hours chart (data feed from Bitstamp) of BTC/USD, which may result in the next rally.
- The price is showing a lot of bullish signs, and if all goes well, then there can be a move above $465 this upcoming week.
Bitcoin price as forecasted in the last weekly analysis started to trade higher. If the current sentiment stays, BTC/USD can test $470.
Bitcoin Price- Buying dips?
Bitcoin price climbed higher this past week and traded towards the $470 resistance area against the US Dollar. The best part of the upside move was the fact that the price settled above the 100 simple moving average on the 4-hours chart (data feed from Bitstamp) of BTC/USD. Once the price closed above the stated MA, there was a sharp rise towards $465 where it found offers.
There is now a contracting triangle pattern formed on the 4-hours chart, which can act as a catalyst for the next move in the short term. The price is currently trading near the 23.6% Fibonacci retracement level of the wave from the $437 low to $434 high. So, there is a chance of a minor dip towards the 38.2% Fibonacci retracement level of the same wave.
However, if BTC/USD moves down from the current levels, then it may find buyers near the 100 SMA, which is near $452. Overall, buying dips may be considered in the short term as long as the price is above the triangle support trend line or $440.
Looking at the technical indicators:
4-hours MACD – The MACD is in the bullish slope, calling for more upsides in BTC/USD.
4-hours RSI (Relative Strength Index) – The RSI is around the overbought levels, meaning a minor down move is possible.
Major Support Level – $452
Major Resistance Level – $465
Charts from Bitstamp; hosted by Trading View
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.