Analysis Bitcoin

Bitcoin Price Weekly Analysis –/USD Further Appreciation Likely

Aayush Jindal | October 2, 2016 | 6:00 am
Bitcoin Price Weekly Analysis
Analysis

Bitcoin Price Weekly Analysis –/USD Further Appreciation Likely

Aayush Jindal | October 2, 2016 | 6:00 am

Key Points

  • Bitcoin price managed to gain traction this past week versus the US dollar and settled above the $600 level.
  • This past week’s highlighted bearish trend line on the 4-hours chart (data feed from SimpleFX) of BTC/USD was broken during the recent upside.
  • The price remains in an uptrend, and buying dips may be considered in the short term.

Bitcoin price broke a couple of important hurdles versus the US dollar, which has opened the gates for more gains moving ahead.

Bitcoin Price Trend Line Support

Bitcoin price moved higher in a perfect 5-wave structure this past week versus the US dollar, and settled above the $600 level. The best part was the fact that the 61.8% Fib retracement level of the last drop from the $613 high to $581 low was cleared. It opened the gates for a full test of the last swing high. The price not only broke it, but also made a new high of $616.

During the upside move, there was a break above this past week’s highlighted bearish trend line on the 4-hours chart (data feed from SimpleFX) of BTC/USD. The price after trading as high as $616 started correcting lower.  It may soon test the 23.6% Fib retracement level of the wave from the $581 low to $616 high. There are many support levels on the downside, waiting for the BTC bulls.

Bitcoin Price Weekly Analysis

There is even a bullish trend line formed on the same chart, which is positioned with the 100 simple moving average (H4 chart). So, in my view, the price remains supported on the downside. One may even consider buying with a stop below the 100 SMA.

Looking at the technical indicators:

4-hours MACD – The MACD is placed comfortably in the bullish zone, which is a positive sign.

4-hours RSI (Relative Strength Index) – The RSI is around the overbought levels, so there can be a minor correction.

Major Support Level – $600

Major Resistance Level – $615

 

Charts courtesy – SimpleFX

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