Bitcoin Price Weekly Analysis –BTC/USD To Break $600?

Key Points

  • Bitcoin price enjoyed a decent upside ride against the US Dollar, and it looks poised for more gains.
  • There is a bullish trend line formed on the daily chart (data feed from Bitstamp) of BTC/USD, which is acting as a catalyst for the upside move.
  • If the current technical indicators are correct, there is a chance of BTC/USD breaking $600.

Bitcoin price is gaining momentum as the daily chart of BTC/USD looks positive. Can BTC retain strength to break the $600 handle?

Bitcoin Price Eyeing Gains

Bitcoin price grinded higher this past week vs the US Dollar and gained a lot of strength. The last 10 daily candles are impressive and suggesting that the BTC bulls are in control. The price broke an important resistance area near $550, which may now act as a support area if BTC/USD moves down from the current or higher levels. As mentioned, there is a bullish trend line formed on the daily chart (data feed from Bitstamp) of BTC/USD, which acted as a reason for the upside surge.

Now let us look at how far the price can move? I think there are high chances of the price breaking the all-important $600 level. If we look at the last wave, then the 1.618 extension of the last drop from the $500 high to $295 low is around the $625 level. So, I think the price may test the mentioned extension, and may even break it in the near term.

Bitcoin Price Weekly Analysis

Bitcoin Price Weekly Analysis

The price is also well above the 100-day simple moving average, which is a bullish sign and may lift the market sentiment further.

Looking at the technical indicators:

Daily MACD – The MACD is strongly bullish and calling for more gains in BTC/USD.

Daily RSI (Relative Strength Index) – The RSI is around the overbought levels, which may ignite a minor downside reaction as a correction.

Major Support Level – $550

Major Resistance Level – $600

 

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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