- Bitcoin price surged higher further this past week versus the US Dollar, as forecasted in the last week analysis.
- There was a bearish trend line formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD, which was broken to open the doors for more gains.
- The price traded as high as $675, and currently correcting lower.
Bitcoin price spiked higher recently against the US Dollar, and registered a new weekly high to fulfil our last week’s target. More gains likely?
Bitcoin Price Rally
In the last weekly analysis, I mentioned that there is a chance of Bitcoin price moving further higher against the US Dollar. I was looking for a test of $650, and the price did move higher to test the stated level. It not only tested it, but also broke it for a move towards $675. It looks like the price gained a lot of momentum, and the BTC bulls were in control.
During the recent upside move, the price broke a bearish trend line formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD. It cleared the way for a sharp upside move. However, the $675 level is acting as a resistance, and as a result, a correction is initiated. On the downside, an initial support is at the 23.6% Fib retracement level of the last wave from the $625 low to $675 high. However, there is a chance of the correction extending further.
The most important support may be around the 50% Fib retracement level of the last wave from the $625 low to $675 high at $650. It is a crucial area , and one may even consider buying in the short term with a small stop.
Looking at the technical indicators:
4-hours MACD – The MACD is comfortably placed in the bullish zone, and showing positive signs.
4-hours RSI (Relative Strength Index) – The RSI is around the overbought levels, and signaling a correction.
Major Support Level – $650
Major Resistance Level – $675
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.