Analysis Technical

Bitcoin Price Weekly Analysis: BTC/USD Buyers Losing Momentum Above $6,600

Aayush Jindal | October 7, 2018 | 6:28 am
Analysis

Bitcoin Price Weekly Analysis: BTC/USD Buyers Losing Momentum Above $6,600

Aayush Jindal | October 7, 2018 | 6:28 am

Key Points

  • Bitcoin price formed a decent support near the $6,400 level against the US Dollar.
  • There was a break above a major bearish trend line with resistance at $6,540 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair is struggling to gain momentum above the $6,600 and $6,650 resistance levels.

Bitcoin price is trading with a positive bias above $6,400 against the US Dollar. BTC/USD must break the $6,650 resistance to gain upside momentum.

Bitcoin Price Analysis

This past week, bitcoin price found a strong buying interest above the $6,400 level against the US Dollar. The BTC/USD pair started an upside move and traded above the $6,480 resistance level. Buyers also surpassed the price above the 23.6% Fib retracement level of the last decline from the $6,800 high to $6,399 low. It opened the doors for more gains and the price spiked above the $6,600 level.

Moreover, there was a break above a major bearish trend line with resistance at $6,540 on the 4-hours chart of the BTC/USD pair. The pair tested the 61.8% Fib retracement level of the last decline from the $6,800 high to $6,399 low. It got rejected and there no proper close above the $6,650 level. The price also struggled to gain momentum above the $6,600 level and the 100 simple moving average (4-hours). A fresh downside leg was initiated and the price declined below the $6,550 level. At the moment, the price is consolidating below the $6,600 level and is preparing for the next move.

Bitcoin Price Weekly Analysis BTC Chart

Looking at the chart, BTC price could climb higher once again above $6,600. However, the price has to gain traction above the $6,650 level. The next hurdles for buyers are near the $6,700 and $6,800 levels. The key supports are at $6,480 and $6,400.

Looking at the technical indicators:

4-hours MACD – The MACD for BTC/USD is slightly in the bullish zone.

4-hours RSI (Relative Strength Index) – The RSI is currently above the 50 level.

Major Support Level – $6,400

Major Resistance Level – $6,650

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