Bitcoin Price Weekly Analysis – BTC/USD Holding Crucial Supports

Key Points

• Bitcoin price corrected sharply after trading towards $2650 against the US Dollar, but remains supported on the downside.
• The last week’s highlighted important bullish trend lines with support at $1940 and $1800 on the 4-hours chart of BTC/USD (data feed from SimpleFX) are holding well.
• As long as the price is above these trend lines and $1800, it is likely to move back above $2200.

Bitcoin price after a surge towards $2700 against the US Dollar corrected lower, but these dips in BTC/USD are protected by a major support area.

Bitcoin Price Buy Dips?

In the last weekly analysis, I mentioned that the overall trend is bullish with chances of a move above $2100 in Bitcoin price against the US Dollar. There was no stopping the price, as it climbed above $2100, $2400 and even $2500. It traded as high as $2684 where it faced sellers and started a downside move. First, it cleared the 23.6% Fib retracement level of the last wave from the $1664 low to $2684 high. It called for the start of a correction below $2500.

The price dived sharply and even broke the $2200 support. The most important break was below the 50% Fib retracement level of the last wave from the $1664 low to $2684 high. However, the downside move was prevented by the last week’s highlighted important bullish trend lines with support at $1940 and $1800 on the 4-hours chart of BTC/USD. These trend lines are acting as a monster support above $1800.

The price also struggled to close below the 100 simple moving average (H4) at $1988. These are positive signs, and means the price is above a major support at $1800. As long as there is no daily close below $1800, we may see a sharp recovery above $2150 and $2200 in the near term.

Looking at the technical indicators:

4-hours MACD – The MACD is currently in the bearish zone, but recovering.

4-hours RSI (Relative Strength Index) – The RSI is heading higher from the oversold levels.

Major Support Level – $1800

Major Resistance Level – $2200

 

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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