27-04-2017
10:41 pm
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Bitcoin Price Weekly Analysis – BTC/USD to Regain Strength




Bitcoin price after a monstrous ride corrected lower towards $650 against the USD. It looks like the BTC/USD is positioning for another move higher.
Bitcoin Price Weekly Analysis

Key Points

  • Bitcoin price jaw dropped back towards $650 after a solid ride towards the $750 level.
  • There is a crucial bullish trend line formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD, which is acting as a support zone.
  • The 100 simple moving average is also on the downside, acting as a barrier for sellers.

Bitcoin price after a monstrous ride corrected lower towards $650 against the USD. It looks like the BTC/USD is positioning for another move higher.

Bitcoin Price Buy Dips?

I mentioned in my last weekly analysis that Bitcoin price remains in an uptrend against the US Dollar, and may continue to gain strength. There was a minor dip this past week, and then the price spiked higher. During the upside move the price broke the 61.8% Fib retracement level of the last wave from the $625 low to $729 high to open the doors for an upside move.

The BTC/USD pair even broke the last high to trade as above the $750 level. However, the BTC sellers appeared around $760, and pushed the pair down. There was a downside move, taking the price back towards the $700 level. However, a crucial bullish trend line formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD acted as a support area and protected losses. The price is now bouncing back.

Bitcoin Price Weekly Analysis

It has already broken the 38.2% Fib retracement level of the last drop from the $758 high to $665 low. It is a clear signal that the price may continue to move higher, and could even test the last swing high of $758. One may consider buying dips as long as the price is above the trend line support.

Looking at the technical indicators:

4-hours MACD – The MACD is currently in the bearish zone, but slowly changing bias.

4-hours RSI (Relative Strength Index) – The RSI has just moved back above the 50 level, which is a positive sign.

Major Support Level – $700

Major Resistance Level – $730

 

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.

Published by

Aayush Jindal

Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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