Bitcoin Price Weekly Analysis – BTC/USD Remains Bullish

Key Points

• Bitcoin price is trading in the bullish zone above the $5600 support against the US Dollar.
• There is a key contracting triangle forming with support at $5600 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
• The pair is now placed well in the buyer’s area and looking for more gains above $5800 in the near term.

Bitcoin price remains is placed well above the $5500-5600 support against the US Dollar. BTC/USD might break the $5850 resistance for more upsides soon.

Bitcoin Price Buy Dips

There were decent gains in Bitcoin price above the $5400 level against the US Dollar. The price remained supported above $5500 and even attempted a break above $6000 once. However, sellers appeared and prevented gains above $6000. A high was formed at $5999 and the price started correcting lower. It has moved below the 38.2% Fib retracement level of the last wave from the $5362 low to $5999 high.

However, the downside move below $5500 seems to be limited. Buyers appeared near $5650 and the 50% Fib retracement level of the last wave from the $5362 low to $5999 high. More declines look limited by the $5600 and $5500 support levels. Moreover, the 100 simple moving average (H4) is also near the $5680 level to act as a short-term support. It seems like there is a key contracting triangle forming with support at $5600 on the 4-hours chart of BTC/USD.

The pair might trade in a range and inside the triangle above $5500 before the next move. A break and close above $5850 would open the doors for an upside drift toward the $6000 level. On the downside, the $5600 and $5500 levels are buy zones.

Looking at the technical indicators:              

4-hours MACD – The MACD is now placed in the neutral zone.

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

Major Support Level – $5600

Major Resistance Level – $5850

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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