- Bitcoin price surged higher this past week versus the US Dollar to register a close above the $635 resistance.
- There is a flag pattern forming on the 4-hours chart (data feed from SimpleFX) of BTC/USD, which may ignite another rally.
- The price may break the recent high of $647 to challenge the $650 level moving ahead.
Bitcoin price is currently in a bullish trend against the US Dollar, and it looks like the BTC/USD pair may trade further higher this week.
Bitcoin Price Buy Dips
In the last weekly analysis, I stated that Bitcoin is a good buy on the dips against the US Dollar in the short term. It looks like the idea did work as BTC price managed to climb higher and registered a close above the $635 resistance. There was a nice upside move, which took Bitcoin price above a couple of important hurdles. There was a new weekly high posted at $647, and currently the price is consolidating.
There is a flag pattern forming on the 4-hours chart (data feed from SimpleFX) of BTC/USD. It may play a major role in the short term, and could spark yet another rally. On the downside, the 23.6% Fib retracement level of the last wave from the $611 low to $647 high is acting as a support along with the flag lower trend line. As long as the price is above it, there is a chance of a break higher.
The next stop on the upside may be around the $650 level where the BTC sellers may try their best to prevent any additional gains. If at all, there is a downside break, then the 50% Fib retracement level of the last wave from the $611 low to $647 high may be tested.
Looking at the technical indicators:
4-hours MACD – The MACD is currently placed in the bullish zone, but slowly losing momentum.
4-hours RSI (Relative Strength Index) – The RSI is well above the 50 level, which is a positive sign.
Major Support Level – $635
Major Resistance Level – $650
Charts courtesy – SimpleFX