Bitcoin Price Weekly Analysis – Can BTC/USD Hold This

Key Points

• Bitcoin price was under some pressure due to solid rise of BCH against the US Dollar above $800.
• The BTC/USD pair is currently trading above a bullish trend line positioned at $4000 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
• As long as the price is above the $4000 level, it may recover in the near term.

Bitcoin price failed to move above the $4475 level against the US Dollar, and BTC/USD is now trading near a major support area.

Bitcoin Price Support

Bitcoin price made a good ground this past week above $4000 against the US Dollar. However, the price failed to break the $4500 level and started a downside move. The decline was also due to an increase of buying interest in BCH, which traded above the $800 level. There was a decline in BTC price below the 23.6% Fib retracement level of the last wave from the $3232.76 low to $4475.37 high. The price was also able to move below a crucial bullish trend line at $4180 on the 4-hours chart.

The downside move was prevented by another bullish trend line positioned at $4000 on the same chart. Moreover, the 38.2% Fib retracement level of the last wave from the $3232.76 low to $4475.37 high acted as a support. The pair is holding the bullish trend line well and currently trading above $4000. It has to stay above $4000 if buyers have to take the price back towards $4400.

A break and close below $4000 could take the price towards the 61.8% Fib retracement level of the last wave from the $3232.76 low to $4475.37 high. Overall, the $4000 support holds the key in the short term.

Looking at the technical indicators:

4-hours MACD – The MACD has just moved into the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI has also moved below the 50 level.

Major Support Level – $4000

Major Resistance Level – $4180

 

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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