Bitcoin Weekly Forecast: BTC Price Primed For Bullish Break

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  • After a strong decline, bitcoin price found support near $7,000 against the US Dollar.
  • The price is now trading near the $7,300 and $7,320 resistance levels.
  • There is a major breakout pattern forming resistance near $7,320 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The price could dip a few points, but it is likely to find bids near the $7,180 and $7,050 levels.

Bitcoin price is trading above a few key supports against the US Dollar. BTC seems to be preparing for the next bullish break above $7,300 and $7,400.

Bitcoin Price Weekly Analysis (BTC)

This past week, bitcoin started a downside correction from the $7,500 resistance area against the US Dollar. BTC price traded below the $7,300 support and the 100 simple moving average (4-hours).

However, the decline was protected by the $7,000 support area. A swing low was formed near $6,922 and the price recovered sharply above $7,000. Moreover, there was a break above the 50% Fib retracement level of the downward move from the $7,431 high to $6,922 low.

Bitcoin price is now trading above the $7,200 level and 100 simple moving average (4-hours). On the upside, the $7,300 level seems to be acting as a hurdles. Besides, the 76.4% Fib retracement level of the downward move from the $7,431 high to $6,922 low is at $7,311.

More importantly, there is a major breakout pattern forming resistance near $7,320 on the 4-hours chart of the BTC/USD pair. Therefore, an upside break above $7,320 and a close above $7,400 could start a strong bullish wave.

An immediate resistance is near the $7,460 level, above which the price is likely to rally towards the $7,640 level. An intermediate resistance is near the 1.236 Fib extension level of the downward move from the $7,431 high to $6,922 low at $7,551.

Any further gains could push the price towards the $8,000 resistance area. Conversely, the price might struggle to continue above $7,320 and $7,400. In the mentioned case, the price could dip lower towards the $7,180 support.

The main triangle support is near the $7,050 level, below which the bulls are likely to struggle and the bears could take charge in the near term.

Bitcoin Price

Looking at the chart, bitcoin price is clearly trading with a positive bias above $7,180 and 100 simple moving average (4-hours). Though, a successful break above $7,320 and $7,400 is needed for a nice rally.

Technical indicators

4 hours MACD – The MACD for BTC/USD is slowly losing bullish momentum.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.

Major Support Level – $7,050

Major Resistance Level – $7,400

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HyperCapital

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