Bitcoin Price Weekly Analysis – BTC/USD Top Formed

Key Points

• Bitcoin price traded nicely higher above the $1200 resistance against the US Dollar before finding sellers.
• The BTC/USD has broken a bullish trend line at $1224 on the 4-hours chart (data feed from SimpleFX), and currently finding support around another trend line.
• The price is currently above the 100 simple moving average (H4) at $1160, which is a positive sign.

Bitcoin price may have made a short-term top near $1240 against the US Dollar, but dips remain supported in BTC/USD in the near term.

Bitcoin Price Trend Line Support

There was a solid increase in Bitcoin price, as it moved above $1200 against the US Dollar. The price started an upside move, and broke a couple of resistance levels like $1160 and $1185 to set an uptrend. The best part was a close above the 100 simple moving average (H4) at $1165. Moreover, the price was also able to break the 1.618 extension of the last decline from the $1120 high to $889 low. It ignited a sharp upside move and the price moved above $1200.

A new monthly high was formed near $1239 from there the price started correcting lower. The price has corrected lower, and broken a bullish trend line at $1224 on the 4-hours chart. This is a short-term bearish sign, and may call for more losses. At the moment, the BTC/USD pair is trading near another bullish trend line at $1190. It is acting as a support along with the 23.6% Fib retracement level of the last wave from the $889 low to $1239 high.

Moreover, the 100 simple moving average (H4) at $1160 is waiting to act as a support if the price moves down further. In my view, the price is under a short-term correction mode, but remains supported as long as above $1165.

Looking at the technical indicators:

4-hours MACD – The MACD is currently flat.

4-hours RSI (Relative Strength Index) – The RSI is struggling to hold the 50 level.

Major Support Level – $1160

Major Resistance Level – $1220

 

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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