- Bitcoin price continued to surge higher this past week against the US Dollar and traded above $620.
- There is an ascending channel pattern formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD, which is acting as a support area.
- As long as the price is in the channel, there is a chance of more gains in the near term.
Bitcoin price remained in an uptrend this past week versus the US Dollar, and my view of further gains played well in the near term.
Bitcoin Price Rise
Bitcoin price consolidated for some time against the US Dollar before climbing higher. In the last weekly analysis, I mentioned that the BTC is trading with a positive tone, presenting a risk of more gains. The price did climb higher and closed the week above the $600 level. A new high of $626 was formed in the BTC/USD pair, and the pair is still trading with a bullish bias.
As mentioned, there is an ascending channel pattern formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD. It may play a crucial role for the BTC bulls in the near term. If the price manages to stay in the channel, it may climb further. The BTC bears at the moment attempting to break the channel support area. However, it won’t be easy for them to clear it.
A break will ignite a correction in the BTC/USD pair. In that case, there is a chance of a move towards the 50% Fib retracement level of the last wave from the $569 low to $626 high. Even then, the price remains support and buying favored.
Looking at the technical indicators:
4-hours MACD – The MACD is currently in the bullish zone, but slightly moving lower.
4-hours RSI (Relative Strength Index) – The RSI is well above the 50 level, which is a positive sign.
Major Support Level – $600
Major Resistance Level – $625
Charts courtesy – SimpleFX