Bitcoin Price Weekly Analysis – BTC/USD Remains a Buy

Key Points

• Bitcoin price slowly and steadily moved above the $1000 resistance against the US Dollar.
• There is a nice bullish trend line formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD, which may act as a support near $1020.
• The price is also above the 100 simple moving average (H4), which is a major support at $1023.

Bitcoin price gained bids against the US Dollar to trade above a crucial hurdle ($1000). BTC/USD now has moved into the bullish zone with buy dips approach.

Bitcoin Price Support

It looks like Bitcoin price managed to recover well during the past week against the US Dollar, as it moved above $1000. There was a perfect structure formation for a recovery. The best part was a close above the $1000 level, and also above the 100 simple moving average (H4). The same 100 SMA may now act as a support on the downside near $1023 if the price moves down.

There are a few important support levels formed on the downside near $1020 and $1000. The 23.6% Fib retracement level of the last wave from the $916 low to $1056 high is positioned at $1023. It is perfectly aligned with the 100 SMA. It means there is a crucial support formation near $1023. Below $1023, there is a nice bullish trend line formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD.

It can be considered as a buy zone, as the trend line is moving higher and might slowly align near $1020. Overall, the price remains supported on the downside near $1023 and the trend line. As long as there is no close below $1000, one may consider buying on dips.

Looking at the technical indicators:

4-hours MACD – The MACD is in the bullish zone and suggesting positive signs.

4-hours RSI (Relative Strength Index) – The RSI is moving down from the overbought levels, but remains well above the 50 level.

Major Support Level – $1020

Major Resistance Level – $1050

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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