- Bitcoin price surged higher further this past week versus the US Dollar, as forecasted in the last week analysis.
- There was a bearish trend line formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD, which was broken to open the doors for more gains.
- The price traded as high as $675, and currently correcting lower.
Bitcoin price spiked higher recently against the US Dollar, and registered a new weekly high to fulfil our last week’s target. More gains likely?
Bitcoin Price Rally
In the last weekly analysis, I mentioned that there is a chance of Bitcoin price moving further higher against the US Dollar. I was looking for a test of $650, and the price did move higher to test the stated level. It not only tested it, but also broke it for a move towards $675. It looks like the price gained a lot of momentum, and the BTC bulls were in control.
During the recent upside move, the price broke a bearish trend line formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD. It cleared the way for a sharp upside move. However, the $675 level is acting as a resistance, and as a result, a correction is initiated. On the downside, an initial support is at the 23.6% Fib retracement level of the last wave from the $625 low to $675 high. However, there is a chance of the correction extending further.
The most important support may be around the 50% Fib retracement level of the last wave from the $625 low to $675 high at $650. It is a crucial area, and one may even consider buying in the short term with a small stop.
Looking at the technical indicators:
4-hours MACD – The MACD is comfortably placed in the bullish zone, and showing positive signs.
4-hours RSI (Relative Strength Index) – The RSI is around the overbought levels, and signaling a correction.
Major Support Level – $650
Major Resistance Level – $675
Charts courtesy – SimpleFX