- A fresh yearly high was formed at $5,465 before bitcoin corrected lower against the US Dollar.
- The price started a downside correction and traded below the $5,200 support level.
- There was a break below a major bullish trend line with support at $5,200 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair tested the $4,950 support area and it seems like there are many supports on the downside.
Bitcoin remains in a strong uptrend despite the recent correction below $5,200 against the US Dollar. BTC is likely to find buyers near soon and it could bounce back above $5,150.
Bitcoin Price Weekly Analysis (BTC)
There was a steady rise in bitcoin above the $5,350 level this past week against the US Dollar. The BTC/USD pair even broke the $5,450 level and traded to a new yearly high at $5,465. Later, there was a downside correction and the price broke the $5,400 and $5,350 support levels. Sellers gained pace once the price broke the key $5,200 support area. There was even a break below the 50% Fib retracement level of the last wave from the $4,702 low to $5,465 high.
Moreover, there was a break below a major bullish trend line with support at $5,200 on the 4-hours chart of the BTC/USD pair. Sellers pushed the price below the $5,000 level and the price tested the $4,950 support area. Besides, there was a test of the 76.4% Fib retracement level of the last wave from the $4,702 low to $5,465 high. Recently, the price recovered above the $5,050 level, but it faced a strong resistance near the $5,130 level. The stated $5,130 level was a support earlier and now it is acting as a hurdle for buyers.
It seems like there might be another downside push towards the $4,950 or $4,900 support levels before the price starts a fresh increase. The $4,800 level is also a strong support since it is a pivot area and coincides with the 100 simple moving average (4-hours). Therefore, if there are more downsides, the price is likely to remain supported near $4,900 or $4,800.
Looking at the chart, bitcoin is clearly trading in an uptrend as long as it is above $4,800 and the 100 simple moving average (4-hours). If there is a close below the 100 SMA, the price could decline towards the $4,500 level. Conversely, the price is likely to bounce back above $5,150 and $5,200 in the near term.
4 hours MACD – The MACD for BTC/USD is about to move into the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is placed just below the 50 level.
Major Support Level – $4,900
Major Resistance Level – $5,150
Author: Aayush Jindal