Bitcoin Price Weekly Analysis – BTC/USD Poised For Gains

Key Points

• Bitcoin price after a strong correction found support at $2040 against the US Dollar, and started a recovery.
• There is a monster ascending channel forming with support at $2260 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
• The price may soon gain momentum and break $2700 for a move towards the last swing high at $2970.

Bitcoin price corrected lower from $2970 against the US Dollar, and now BTC/USD is back above $2400 and looking for a move towards $3000.

Bitcoin Price Resistances

In the last weekly analysis, I highlighted the chances of Bitcoin price moving towards $3000 against the US Dollar. The price did break $2880 and moved towards $3000. However, there was no complete test of $3000, as the price traded as high as $2970. Sellers appeared and ignited a downside move below $2900. A correction wave started and the price fell sharply below the $2500 and $2300 supports.

However, there was no close below the $2000 support, which is a positive sign. The price traded as low as $2043, and later started an upside move. It has already breached the 50% Fib retracement level of the last decline from the $2972 high to $2043 low. Furthermore, there was a break above a bearish trend line at $2500 on the 4-hours chart of BTC/USD. It is a positive sign since the price is above $2500.

Now, the price needs to break the 61.8% Fib retracement level of the last decline from the $2972 high to $2043 low at $2620. Furthermore, a break and close above the 100 simple moving average at $2600-20 could ignite further gains. There is also a monster ascending channel forming with support at $2260. As long as the price is an uptrend, it may test the channel resistance at $3050-80.

Looking at the technical indicators:

4-hours MACD – The MACD is moving back in the bullish zone.

4-hours RSI (Relative Strength Index) – The RSI is currently above 50, and heading higher.

Major Support Level – $2500

Major Resistance Level – $2970

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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