- Bitcoin price may trade higher vs the US Dollar, as it looks it broke a major resistance area.
- There was a contracting triangle pattern formed on the weekly chart (data feed from Bitstamp) of BTC/USD, which was broken during the recent upside move.
- The price is now above the 100-weekly simple moving average, which is a positive sign for the BTC bulls.
Bitcoin price looks bullish on a higher timeframe chart like the weekly chart, but the BTC bulls must capitalize and take it higher.
Bitcoin Price Crucial Break
Bitcoin price managed to slowly climb higher vs the US dollar, and traded above the $420 resistance area. The most important point was that the price moved above a contracting triangle pattern formed on the weekly chart (data feed from Bitstamp) of BTC/USD. If the BTC manages to gain strength, then there is a real chance of Bitcoin price rising in the near term.
Another crucial aspect is the fact that the price is above the 100-weekly simple moving average, calling for more upsides. Last but not the least, the price moved above the 23.6% Fib retracement level of the last drop from the $1150 high to $150 low. So, if the momentum picks up, then BTC/USD can easily move towards the 50% Fib retracement level of the last drop from the $1150 high to $150 low.
On the downside, if the price moves down, then the broken triangle resistance area may act as a support area. Remember, this analysis is on the weekly chart, so consider it as a long term view and not a short term analysis.
Looking at the technical indicators:
Weekly MACD – The MACD is almost flat, pointing towards a consolidation before a move higher.
Weekly RSI (Relative Strength Index) – The RSI is above the 50 level, which is a positive sign for the bulls.
Major Support Level – $420
Major Resistance Level – $450
Charts from Bitstamp; hosted by Trading View
Header Image: NewsBTC