Bitcoin Price Weekly Analysis – BTC/USD’s Upsides Remain Capped

 Key Points

• Bitcoin price is slowly recovering and forming support around the $6,500 level against the US Dollar.
• There is a major bearish trend line forming with resistance at $7,500 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
• The pair has to move above the $7,400 and $7,500 resistance levels to gain upside momentum.

Bitcoin price is supported nicely above the $6,500 level against the US Dollar. BTC/USD must clear the $7,500 hurdle for more gains in the near term. 

 

Bitcoin Price Resistance

After a major decline, bitcoin price formed a decent support above the $6,500 level against the US Dollar. The price started an upside move and traded above $7,000. However, the price struggled to gain momentum and declined once again back towards the $6,500 level. The mentioned support holds a lot of importance with multiple rejections around the $6,600 and $6,500 levels.At the moment, the price is trading near the 23.6% Fib retracement level of the last drop from the $9,220 high to $6,448 low. However, there are many barriers on the upside near the $7,200 and $7,500 levels. An initial resistance is near the 38.2% Fib retracement level of the last drop from the $9,220 high to $6,448 low. The next one is around the $7,400 level and the 100 simple moving average (4-hours). There is also a major bearish trend line forming with resistance at $7,500 on the 4-hours chart of the BTC/USD pair. 

The pair might also start an upside pass closer to the $7,400 and $7,500 tiers. However, a smash above the $7,500 degree might be very difficult. A wreck above $7,500 ought to open the doors for extra profits. On the turn side, the $6,600 and $6,500 aid degrees hold lots of significance.

 Looking at the technical indicators:          

4-hours MACD – The MACD for BTC/USD is showing a few positive signs.

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

Major Support Level – $6,600

Major Resistance Level – $7,500 

 Charts courtesy –Trading View 

Source : NewsBTC