Bitcoin Price Weekly Analysis – BTC/USD Sighting More Gains?

Key Points

  • Bitcoin price managed to climb higher this past week against the US Dollar, and looks set for more gains.
  • There was a bearish trend line break noted on the on the 4-hours chart (data feed from Bitstamp) of BTC/USD, which is a positive sign.
  • The price also moved above the 100 simple moving average on the 4-hours chart during the upside move.

Bitcoin price recently moved above a major resistance area, and if the current break is true, there are chances of more upsides in BTC/USD.

Bitcoin Price Break

Bitcoin price started to move higher this past week against the US Dollar and broke a major resistance of $680. The best part is that the price also closed above the 100 simple moving average on the 4-hours chart. There was a bearish trend line on the 4-hours chart (data feed from Bitstamp) of BTC/USD, which was also cleared during the upside move.

Moreover, the price also settled above the 50% Fib retracement level of the last drop from the $780 high to $540 low, which is a bullish sign in the short term. All these signs suggest that the BTC may continue to gain pace against the US dollar, and might trade towards the $720 resistance area one more time.

Bitcoin Price Weekly Analysis

Bitcoin Price Weekly Analysis

The stated resistance area also coincides with the 76.4% Fib retracement level of the last drop from the $780 high to $540 low. I think one may consider buying dips in the BTC/USD pair as long as the price is above the 100 SMA (H chart).

Looking at the technical indicators:

4-hours MACD – The MACD is in the bullish slope, which is a positive sign for the BTC bulls in the near term.

4-hours RSI (Relative Strength Index) – The RSI is also above the 50 level, suggesting the bulls had an upper hand.

Major Support Level – $680

Major Resistance Level – $720

 

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.

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