Bitcoin Price Weekly Analysis – BTC/USD Bullish Channel Forming

Key Points

• Bitcoin price remained well-supported above $2240 against the US Dollar, and looks set for more gains.
• There is a major ascending channel pattern with support at $2245 forming on the 4-hours chart of BTC/USD (data feed from SimpleFX).
• A break and close above $2480 might call for a run towards the last high at $2684.

Bitcoin price is eyeing further gains above $2500 against the US Dollar, as there is a crucial bullish channel forming for BTC/USD.

Bitcoin Price to Retest $2680?

There was a decent uptrend formed after Bitcoin price tested the $1800 support against the US Dollar. The price slowly and steadily moved higher and traded above the $2150 and $2300 resistance levels. At the moment, it is well-supported above the $2240-2420 levels. During the upside move, the price broke the 50% Fib retracement level of the last decline from the $2684 high to $1805.

A close above $2300 is a great sign, and suggests further gains in BTC moving ahead. There is a major ascending channel pattern with support at $2245 forming on the 4-hours chart of BTC/USD. The channel resistance is at $2470-77, and the price is currently struggling to break it. The $2477 resistance also coincides with the 76.4% Fib retracement level of the last decline from the $2684 high to $1805. Therefore, a break above $2477 might open the doors for a move towards the previous all-time high at $2684.

On the downside, the channel support is at $2240, which holds the key for the current bullish trend. As long as the price is above $2200 and the 100 simple moving average (H4), there can be further gains in the near term.

Looking at the technical indicators:

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

4-hours RSI (Relative Strength Index) – The RSI is correcting overbought readings, but showing bullish signs.

Major Support Level – $2200

Major Resistance Level – $2480

 

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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