Bitcoin Price Weekly Analysis – Can BTC/USD Gain Further?

Key Points

  • Bitcoin price had a decent week against the US Dollar, as it remained in the bullish area throughout the week.
  • There is a contracting triangle pattern formed on the 4-hours chart (data feed from Bitstamp) of BTC/USD, which may act as a catalyst for the next move.
  • A break above the triangle resistance area could spark more gains in the BTC/USD pair moving ahead.

Bitcoin price after dipping close to $600 found support and traded higher. Can BTC/USD break the $680 hurdle to challenge $700?

Bitcoin Price Buy?

Bitcoin price was in an uptrend this past week against the US Dollar, and every major correction in BTC/USD found buyers on the downside. The price moved as low as $605 before finding buyers and moving higher. The price is currently above the $650 level and forming a contracting triangle pattern on the 4-hours chart (data feed from Bitstamp) of BTC/USD.

The highlighted triangle pattern holds the key for the BTC bulls in the near term. As it can be seen from the chart, a breakout is approaching, and the chances of a move higher are much more considering the current technical indicators. A successful close above the 100 simple moving average (H4 chart) may also work as a catalyst for the bulls to take the price higher.

Bitcoin Price Weekly Analysis

Bitcoin Price Weekly Analysis

Currently, the 61.8% Fib retracement level of the last drop from the $705 high to $605 low is acting as a resistance. I think a break and close above the mentioned fib level and triangle resistance area may be a call to enter a buy trade with a stop below the 100 SMA (H4 chart).

Looking at the technical indicators:

4-hours MACD – The MACD is almost flat, suggesting a consolidation before the next move.

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

Major Support Level – $655

Major Resistance Level – $670


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.