Bitcoin Price Weekly Analysis – BTC Looks to Trade Higher
- Bitcoin price after climbing above $465 against the US Dollar found sellers and fell sharply.
- A bullish trend line on the 4-hours chart (data feed from Bitstamp) of BTC/USD managed to act as a support and prevented any further declines at $435.
- Buying dips may be a good deal in the short term as long as the price stays above the 100 simple moving average (4-hours).
Bitcoin price showed a lot of bullish signs this past week, and it looks like BTC/USD remains in an uptrend as long as it stays above $440.
Bitcoin Price- 100 SMA as a support area
Bitcoin price surged higher as the BTC bulls managed to outpace the sellers. There was a break and close above the $450 level, but the price found sellers near $470, and moved down sharply. However, there is a bullish trend line on the 4-hours chart (data feed from Bitstamp) of BTC/USD, which acted as a support and stalled the downside move.
The highlighted trend line and support area acted as a buy zone and pushed the price higher. BTC traded positively, and cleared the 50% Fibonacci retracement level of the drop from the $470 high to $435 low. Currently, the price is finding sellers near 61.8% Fib retracement level of the same wave. So, there is a chance of a minor correction from the current levels.
Buying dips may be a good option in the near term, as on the downside, the 100 simple moving average (4-hours) may act as a barrier for sellers along with the highlighted trend line and support area. Stop should be placed below the trend line if you are looking to buy.
Looking at the technical indicators:
4-hours MACD – The MACD is in the bullish zone, calling for more gains in BTC/USD.
4-hours RSI (Relative Strength Index) – The RSI is above the 50 level, which is a bullish sign.
Major Support Level – $440
Major Resistance Level – $465
Charts from Bitstamp; hosted by Trading View
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