Key Points
- Bitcoin price gained a lot of traction this past week versus the US Dollar, and traded higher above $700.
- There is a monster bullish trend line formed on the daily chart (data feed from SimpleFX) of BTC/USD, which acted as a catalyst for an upside move.
- If the current momentum continues, there is a chance of a move towards $750.
Bitcoin price surged high further as forecasted in the last weekly analysis of BTC/USD. Now can the pair trade towards the $750 level this upcoming week?
Bitcoin Price Upside Surge
In the last week analysis, I mentioned that Bitcoin price is in an uptrend against the US Dollar, and buying must be favored. The price did move higher and broke a couple of important resistances for a move higher. The most critical break was above the $700 mark, which may now prove crucial in the short term. Recently, the price bounced from a major confluence support area.
It was made up of a monster bullish trend line formed on the daily chart (data feed from SimpleFX) of BTC/USD. Plus, the 38.2% Fib retracement level of the last wave from the $625 low to $675 high acted as a support area. The price moved higher, and broke the swing high of $675, and then $700. No doubt, the price is in an uptrend, and may continue to move higher.
An initial support on the downside is around the 23.6% Fib retracement level of the last wave from the $626 low to $729 high. One may once again consider buying dips as long as the price is above the highlighted trend line support area.
Looking at the technical indicators:
Daily MACD – The MACD is comfortably placed in the bullish zone, suggesting more gains.
Daily RSI (Relative Strength Index) – The RSI is around the overbought levels, but with no signs of a major correction.
Major Support Level – $675
Major Resistance Level – $730
Charts courtesy – SimpleFX
