Bitcoin Price Weekly Analysis – BTC/USD Eyes Break above $5000?


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Key Points

  • Bitcoin price surged above the $4500 level against the US Dollar as discussed in the last weekly analysis.
  • There is a major bullish trend line with support at $4460 forming on the 4-hours chart of BTC/USD (data feed from SimpleFX).
  • The price recently tested the $4450-60 support and likely to resume its uptrend.

Bitcoin price traded close to $5000 against the US Dollar. Currently, BTC/USD is correcting, but likely to resume its uptrend above $4800 in the near term.

Bitcoin Price Crucial Support

In the last weekly analysis, we discussed the chances of Bitcoin price moving above $4500 against the US Dollar. The price did trade higher and not only broke the $4500 level, but traded close to the $5000 handle. A high was formed at $4966 from where the price started a correction. The price traded below the $4800 and $4700 support levels. However, the downside move was protected by $4460. The mentioned $4460 was a resistance earlier and now stopping losses.

Moreover, a major bullish trend line with support at $4460 on the 4-hours chart of BTC/USD also prevented declines. The price is currently recovering and already moved above the 23.6% Fib retracement level of the recent drop from the $4966 high to $4455 low. It seems like a short-term correction wave is over at $4460. The price might now test the 50% Fib retracement level of the recent drop from the $4966 high to $4455 low. However, it could face sellers near $4700 in the near term.

On the upside, there is a connecting resistance trend line with current resistance at $5020. Therefore, if the price continues to move higher, there could be a break above $5000.

Looking at the technical indicators:

4-hours MACD – The MACD is slightly in the bullish zone.

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

Major Support Level – $4460

Major Resistance Level – $4700

 

Charts courtesy – SimpleFX

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