Bitcoin Price Weekly Analysis – BTC/USD Back in Uptrend
- Bitcoin price started a nice upside move from the $10,100 swing low against the US Dollar.
- There is a contracting triangle pattern forming with resistance at $11,400 on the 4-hours chart of the BTC/USD pair (data feed from SimpleFX).
- The pair may decline or correct a few points, but it remains supported above the $10,500 level.
Bitcoin price is back in an uptrend above $10,500 against the US Dollar. BTC/USD is likely to continue moving higher towards the $12,000 and $12,500 levels.
Bitcoin Price Trend
This past week, there was a fresh upside wave initiated from well below the $10,000 level in bitcoin price against the US Dollar. The price formed an intermediate low around the $10,100 low and moved higher. The most important thing is the fact that the price is now well above the $10,200 support and the 100 simple moving average (4-hours).
Recently, it moved above the $11,000 resistance and formed a high at $11,384. It is currently correcting lower and is testing the 23.6% Fib retracement level of the last wave from the $10,106 low to $11,384 high. At the moment, it seems like there is a contracting triangle pattern forming with resistance at $11,400 on the 4-hours chart of the BTC/USD pair. There is a possibility that the pair may correct lower in the near term towards $10,800 support. However, downsides are likely to find buyers near the $10,800 and $10,500 levels. Moreover, the 50% Fib retracement level of the last wave from the $10,106 low to $11,384 high at $10,745 is also a support zone.
Overall, the price remains in an uptrend as long as above $10,500. On the upside, it may continue to move higher towards the $12,000 and $12,500 levels.
Looking at the technical indicators:
4-hours MACD – The MACD for BTC/USD is placed nicely in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is currently moving lower towards the 50 level.
Major Support Level – $10,500
Major Resistance Level – $11,400
Charts courtesy – SimpleFX