Bitcoin (BTC) Price Weekly Forecast: Downside Thrust Before Fresh Rise?

  • There was a steady rise in bitcoin price above the $ 10,500 resistance against the US Dollar.
  • The price is currently correcting lower after it traded to a new monthly high close to $ 11,000.
  • There is a key bullish trend line forming with support near $ 10,200 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • There could be a downside correction towards the $ 10,100 support area before a fresh increase.

Bitcoin price is trading with a bullish bias above $ 10,000 against the US Dollar. BTC remains buy on dips as long as there is no daily close below $ 10,000.

Bitcoin Price Weekly Analysis (BTC)

In the last weekly forecast, we discussed the importance of the $ 10,000 resistance for bitcoin price against the US Dollar. The BTC/USD pair remained well bid and managed to surpass the $ 10,000 resistance. Moreover, there was a break above the $ 10,500 resistance and the 100 simple moving average (4-hours). Finally, the price climbed above the $ 10,800 level and traded close to the $ 11,000 level.

A swing high was formed near $ 10,949 before the price started a downside correction. There was a sharp decline below the $ 10,800 and $ 10,500 support levels. Moreover, there was a break below the 23.6% Fib retracement level of the last wave from the $ 9,300 low to $ 10,949 high. Finally, there was a break below the $ 10,400 level. However, the price stayed above the $ 10,000 support and the 100 SMA.

Additionally, the price is trading nicely above the 50% Fib retracement level of the last wave from the $ 9,300 low to $ 10,949 high. There is also a key bullish trend line forming with support near $ 10,200 on the 4-hours chart of the BTC/USD pair. If there is a downside break below the trend line support, there could be a sharp decline below $ 10,000 in the near term.

On the upside, an initial resistance is near the $ 10,600 level. If there is an upside break above $ 10,600, the price could revisit the $ 10,800 resistance. Finally, a close above the $ 11,000 level may perhaps set the pace for a larger upward move towards the $ 11,700 level.

Bitcoin Price Weekly Analysis (BTC)

Looking at the chart, bitcoin price seems to be correcting gains, but it is trading nicely above the $ 10,200 support area. The main support is near $ 10,000, below which the price could turn bearish in the coming sessions. On the upside, the price might continue to struggle near $ 10,800 and $ 11,000. Overall, there could be another dip towards $ 10,100 before a fresh increase.

Technical indicators

4 hours MACD – The MACD for BTC/USD is about to move back into the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is slowly rising towards the 55 level.

Major Support Level – $ 10,000

Major Resistance Level – $ 10,800

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Analysis – NewsBTC

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