Bitcoin Price Weekly Analysis – Can Double Bottom Push BTC/USD Higher?

Key Points

  • Bitcoin price declined sharply this past week, as it traded lower not only against the USD but also vs the ETH.
  • There was a downside move towards the $435 support level, which prevented further losses.
  • There is likely a double bottom pattern formed on the hourly chart (data feed from Bitstamp) of BTC/USD, which may push the price higher.

Bitcoin price traded down this past week vs the US dollar, but is looks like BTC/USD is now forming a bullish pattern, which may push it higher.

Bitcoin Price – Recovery Likely?

Bitcoin price managed to recover after trading as low as $435 vs the US dollar. The price is currently trading near a bearish trend line formed on the hourly chart (data feed from Bitstamp) of BTC/USD, which is acting as a resistance area. However, the most important point for the BTC/USD buyers is the fact that there is a bullish pattern creating in the form of a double bottom pattern on the hourly chart.

If the highlighted double bottom pattern on the hourly chart is true, then there is a chance of BTC moving higher in the near term. The price is currently trading near the 38.2% Fib retracement level of the last drop from the $456 high to $435 low. So, if the BTC bulls manage to break the trend line and the 38.2% Fib level, then there is a possibility of a move towards the 61.8% Fib retracement level of the last drop from the $456 high to $435 low.

Bitcoin Price Weekly Analysis

Bitcoin Price Weekly Analysis

If you are looking to buy BTC/USD, then you can consider buying in the short term with a target of 100 hourly simple moving average and a stop of not more than a point.

Looking at the technical indicators:

Hourly MACD – The MACD is in the bullish slope, which is a positive sign.

Hourly RSI (Relative Strength Index) – The RSI is above the 50 level, calling for more gains in the near term.

Major Support Level – $440

Major Resistance Level – $445

 

Charts from Bitstamp; hosted by Trading View

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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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