Wednesday, July 27, 2016

Bitcoin Price Weekly Analysis – Can BTC/USD Gain Further?

Key Points


  • Bitcoin price had a decent week against the US Dollar, as it remained in the bullish area throughout the week.

  • There is a contracting triangle pattern formed on the 4-hours chart (data feed from Bitstamp) of BTC/USD, which may act as a catalyst for the next move.

  • A break above the triangle resistance area could spark more gains in the BTC/USD pair moving ahead.

Bitcoin price after dipping close to $ 600 found support and traded higher. Can BTC/USD break the $ 680 hurdle to challenge $ 700?


Bitcoin Price Buy?


Bitcoin price was in an uptrend this past week against the US Dollar, and every major correction in BTC/USD found buyers on the downside. The price moved as low as $ 605 before finding buyers and moving higher. The price is currently above the $ 650 level and forming a contracting triangle pattern on the 4-hours chart (data feed from Bitstamp) of BTC/USD.


The highlighted triangle pattern holds the key for the BTC bulls in the near term. As it can be seen from the chart, a breakout is approaching, and the chances of a move higher are much more considering the current technical indicators. A successful close above the 100 simple moving average (H4 chart) may also work as a catalyst for the bulls to take the price higher.


Bitcoin Price Weekly Analysis


Currently, the 61.8% Fib retracement level of the last drop from the $ 705 high to $ 605 low is acting as a resistance. I think a break and close above the mentioned fib level and triangle resistance area may be a call to enter a buy trade with a stop below the 100 SMA (H4 chart).


Looking at the technical indicators:


4-hours MACD – The MACD is almost flat, suggesting a consolidation before the next move.


4-hours RSI (Relative Strength Index) – The RSI is above the 50 level, which is a positive sign.


Major Support Level – $ 655


Major Resistance Level – $ 670


 


Charts courtesy – SimpleFX


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Bitcoin Price Weekly Analysis – Can BTC/USD Gain Further?

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