Bitcoin Price Weekly Analysis – BTC/USD Preparing for August

Key Points

• Bitcoin price despite all uncertainty remained supported above $2600 against the US Dollar.
• There is a crucial contracting triangle pattern with support at $2600 forming on the 4-hours chart of BTC/USD (data feed from SimpleFX).
• The price is correcting lower, but most likely to trade above $2720 in the near term.

Bitcoin price is trading with a positive tone above $2500 against the US Dollar, and now BTC/USD is preparing for the next bullish wave.

Bitcoin Price Support

Bitcoin price earlier struggled and moved down by more than $400 to $2400 against the US Dollar. Later, the price found support around the $2400 level and the 100 simple moving average (H4). The price bounced back and moved above the 50% Fib retracement level of the last decline from the $2929 high to $2406 low. The upside move was positive above $2600 despite all uncertainty regarding Bitcoin cash and Hard Fork.

The upside move was capped by the 76.4% Fib retracement level of the last decline from the $2929 high to $2406 low. There is also a crucial contracting triangle pattern with support at $2600 forming on the 4-hours chart of BTC/USD. The triangle resistance is near $2750, which may act as a breakout level for the next move. As long as the price is above the $2500 handle and the 100 simple moving average (H4), it may continue to move higher.

As we move closer to 1^st August 2017, there can be an increase in volatility. Once the dust settles, there are chances of BTC price surging higher. A break and close above the triangle resistance at $2750 could open the doors for more gains.

Looking at the technical indicators:

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

4-hours RSI (Relative Strength Index) – The RSI is just above 50 level with neutral bias.

Major Support Level – $2500

Major Resistance Level – $2750

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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