Key Points
- Bitcoin price climbed further higher and tested the $7,400 resistance area against the US Dollar.
- There is a major ascending channel in place with support at $7,290 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could dip a few points, but the previous resistance near $7,300-25 is likely to hold losses.
Bitcoin price traded to a new weekly high near $7,405 against the US Dollar. BTC/USD is correcting lower, but dips near $7,290 and $7,325 remain supported.
Bitcoin Price Analysis
In the weekly analysis, we discussed two possible targets for bitcoin price (7,300 and $7,400) against the US Dollar. The BTC/USD pair traded higher recently and both 7,300 and $7,400 targets were achieved. Recently, the price broke the key resistance at $7,325 and made a nice upside move. It traded above the last swing high and climbed to a new weekly high at $7,406.
Later, the price started a downside correction and declined below $7,350. The price also moved below the 23.6% Fib retracement level of the recent wave from the $7,225 low to $7,406 high. However, declines were protected by the previous support at $7,325, which acted as a support. Moreover, the price also stayed above the 50% Fib retracement level of the recent wave from the $7,225 low to $7,406 high. At the outset, there is a major ascending channel in place with support at $7,290 on the hourly chart of the BTC/USD pair. The pair is currently trading well above the $7,325 and $7,300 and dips remain supported.
Looking at the chart, bitcoin is following a nice bullish path from the $7,225 low. If there is a downside correction, buyers could appear near $7,325, $7,300 and $7,290. On the upside, a close above $7,400 may open the doors for a push towards the $7,460 and $7,480 levels.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is to some extent placed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently moving lower towards the 50 level.
Major Support Level – $7,290
Major Resistance Level – $7,400
