Bitcoin Price Weekly Analysis – BTC/USD Preparing For $3000

Key Points

• Bitcoin price is in a strong uptrend, and likely to extend gains above $2880 against the US Dollar.
• There is a crucial bullish trend line with support at $2750 forming on the 4-hours chart of BTC/USD (data feed from SimpleFX).
• A break and close above $2880 might call for a move towards the $3000 level.

Bitcoin price gained decent bullish momentum above $2700 against the US Dollar, and it looks like BTC/USD is preparing for a move towards $3000.

Bitcoin Price Support Zone

In the last weekly analysis, I mentioned that there is a real chance of Bitcoin price retesting $2684 against the US Dollar. The price did gain pace, and traded higher for a move towards $2700. It also managed to trade to a new all-time high at $2285. The price is currently correcting lower, but remains well supported above $2700. It recently moved below the 23.6% Fib retracement level of the last wave from the $2566 low to $2885 high.

However, the downside move was prevented below $2700. There is a key bullish trend line with support at $2750 forming on the 4-hours chart of BTC/USD. It is preventing downsides and holding losses below $2750. Moreover, the 50% Fib retracement level of the last wave from the $2566 low to $2885 high is also holding losses very well. Below $2750, there is another bullish trend line just above $2700.

Overall, there are many supports on the downside, starting with $2780 up to $2700. As long as the price stays above these supports, there can be a break above $2880. However, the stated level is acting as a strong resistance, but may not be able to prevent gains towards $3000.

Looking at the technical indicators:

4-hours MACD – The MACD is reducing the bullish zone, but showing positive signs.

4-hours RSI (Relative Strength Index) – The RSI is currently moving lower, but remains well above the 50 level.

Major Support Level – $2700

Major Resistance Level – $2880

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.

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