Bitcoin Price Weekly Analysis: BTC/USD Showing Recovery Signs
- Bitcoin price made a short-term low near $5,800 and bounced back against the US Dollar.
- There was a break above a key bearish trend line with resistance at $6,280 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair is currently trading with a positive bias above the $6,000 support area.
Bitcoin price is showing positive signs against the US Dollar. BTC/USD may perhaps extend the current wave towards the $6,500 and $6,600 resistance levels.
Bitcoin Price Support
This past week, bitcoin price faced a lot of selling interest as it declined below the $6,000 level against the US Dollar. The BTC/USD pair traded below the $5,800 level and tested the $5,650 support. A low was formed at $5,654 and the price started an upward correction. It moved back above the $6,000 resistance and traded with a bullish bias.
It cleared the 50% Fib retracement level of the last decline from the $6,832 high to $5,654 low. More importantly, there was a break above a key bearish trend line with resistance at $6,280 on the 4-hours chart of the BTC/USD pair. At the moment, the price is consolidating gains near the $6,400 level and the 100 simple moving average (4-hours). A break above the 61.8% Fib retracement level of the last decline from the $6,832 high to $5,654 low is needed for buyers to gain traction. The next hurdles on the upside are at $6,500 and $6,600.
Looking at the chart, the price is showing a few positive signs above the $6,000 level. However, it must break the $6,500 resistance and settle above the 100 SMA. If not, there is a chance of a bearish reaction back towards $6,000. Below this, the price will most likely retest the $5,800 support area.
Looking at the technical indicators:
4-hours MACD – The MACD for BTC/USD is moving nicely in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is now well above the 50 level.
Major Support Level – $6,000
Major Resistance Level – $6,500