- Bitcoin price gained momentum this past week against the US Dollar, and moved above $1000.
- There is a crucial bullish trend support in the form of as ascending channel on the 4-hours chart (data feed from SimpleFX) of BTC/USD.
- On the downside, the $$1050 support area is the key and may act as a buy area.
Bitcoin price is back in the bullish zone above $1000 against the US Dollar, and BTC/USD looks set for more gains possibly towards $1080.
Bitcoin Price Bullish Trend
This past week was positive for Bitcoin price, as it broke the $980 resistance against the US Dollar. The upside move gained pace, and as a result, there was a break above the $1000 level. The price also managed to break the 1.618 extension of the last drop from the $980 high to $920 low. It opened the doors for more gains in the short term, and the price recently traded as high a $1076 (data feed from SimpleFX).
The price at the moment correcting lower, and likely heading towards the 23.6% Fib retracement level of the last leg from the $979 low to $1076 high. The same fib level also coincides with a crucial bullish trend support in the form of as ascending channel on the 4-hours chart at $1053. So, we can say that the price remains supported on the downside near $1050-1053.
Only a close below the channel support area may call for more declines. In that case, a test of the 38.2% Fib retracement level of the last leg from the $979 low to $1076 high is possible. On the upside, the next major resistance could be near $1080.
Looking at the technical indicators:
4-hours MACD – The MACD is in the bullish zone with positive momentum.
4-hours RSI (Relative Strength Index) – The RSI is steady above the 70 level, and correcting lower.
Major Support Level – $1050
Major Resistance Level – $1080
Charts courtesy – SimpleFX
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