Bitcoin Price Weekly Analysis: BTC/USD Targets $7,300-7,400
- Bitcoin price is moving higher nicely and it could soon test the $7.300 level against the US Dollar.
- There is a major bullish trend line formed with support at $7,050 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to climb higher slowly and steadily above the $7,300 level in the near term.
Bitcoin price is gaining strength above the $7,100 level against the US Dollar. BTC/USD buyers are now targeting the $7,300 and $7,400 resistances.
Bitcoin Price Rise
This past week, bitcoin price broke a major resistance zone near the $6,775 level against the US Dollar. The BTC/USD pair traded above the $7,100 level and later corrected lower. The price corrected back towards the broken resistance at $6,775, which acted as a support. Later, there was a fresh upward move and the price traded above the $6,900 and $7,000 level. There was a proper close above the $7,000 level and the price is now well above the 100 simple moving average (4-hours).
During the rise, the price cleared the 76.4% Fib retracement level of the last decline from the $7,135 high to $6,778 low. It opened the doors for more gains and the price traded above the $7,135 high. More importantly, it tested the 1.236 Fib extension level of the last decline from the $7,135 high to $6,778 low at $7,219. It indicates that the price is now placed nicely in an uptrend above $7,000. On the downside, there is a major bullish trend line formed with support at $7,050 on the 4-hours chart of the BTC/USD pair. Therefore, dips remain supported near $7,050 and $7,000.
Looking at the chart, BTC price is likely to extend gains towards the $7,355 level. It is the 1.618 Fib extension level of the last decline and a key resistance zone. Above this, the next target for buyers could be $7,400.
Looking at the technical indicators:
4-hours MACD – The MACD for BTC/USD is placed nicely in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is now well above the 60 level.
Major Support Level – $7,000
Major Resistance Level – $7,355