Bitcoin Price Weekly Analysis – BTC/USD Eyes Break above $5000?

Key Points

• Bitcoin price surged above the $4500 level against the US Dollar as discussed in the last weekly analysis.
• There is a major bullish trend line with support at $4460 forming on the 4-hours chart of BTC/USD (data feed from SimpleFX).
• The price recently tested the $4450-60 support and likely to resume its uptrend.

Bitcoin price traded close to $5000 against the US Dollar. Currently, BTC/USD is correcting, but likely to resume its uptrend above $4800 in the near term.

Bitcoin Price Crucial Support

In the last weekly analysis, we discussed the chances of Bitcoin price moving above $4500 against the US Dollar. The price did trade higher and not only broke the $4500 level, but traded close to the $5000 handle. A high was formed at $4966 from where the price started a correction. The price traded below the $4800 and $4700 support levels. However, the downside move was protected by $4460. The mentioned $4460 was a resistance earlier and now stopping losses.

Moreover, a major bullish trend line with support at $4460 on the 4-hours chart of BTC/USD also prevented declines. The price is currently recovering and already moved above the 23.6% Fib retracement level of the recent drop from the $4966 high to $4455 low. It seems like a short-term correction wave is over at $4460. The price might now test the 50% Fib retracement level of the recent drop from the $4966 high to $4455 low. However, it could face sellers near $4700 in the near term.

On the upside, there is a connecting resistance trend line with current resistance at $5020. Therefore, if the price continues to move higher, there could be a break above $5000.

Looking at the technical indicators:

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

4-hours RSI (Relative Strength Index) – The RSI is currently around the 50 level.

Major Support Level – $4460

Major Resistance Level – $4700

 

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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