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- A new annual record was set at $ 5,465 before bitcoin was corrected down against the US dollar.
- The price started a downward correction and traded below the support level of $ 5,200.
- There was a break below a major uptrend line with support at $ 5,200 on the 4-hour chart of the BTC / USD pair (Kraken data feed).
- The pair tested the support area at $ 4,950 and there appears to be a lot of downside support.
Bitcoin remains in a strong uptrend despite the recent correction below US $ 5,200 against the US dollar. It is likely that BTC will soon find buyers and could rebound above $ 5,150.
Bitcoin Price Weekly Analysis (BTC)
Bitcoin posted a steady rise against the US dollar above the US $ 5,350 level last week. The BTC / USD pair even surpbaded the $ 5,450 level and reached a new annual high of $ 5,465. Later, there was a downward correction and the price exceeded the support levels of $ 5,400 and $ 5,350. Vendors took the pace once the price crossed the key support area of $ 5,200. There was even a break below the Fib retracement level of 50% of the last wave, going from the lowest level of $ 4,702 to a high of $ 5,465.
In addition, a break was under a major uptrend line with support at $ 5,200 on the 4-hour chart of the BTC / USD pair. Vendors pushed the price below the $ 5,000 level and tested the $ 4,950 support zone. In addition, it was tested that the last wave Fib retracement level of 76.4% went from the lowest level of $ 4,702 to a high of $ 5,465. Recently, the price has recovered above the level of $ 5,050, but it has encountered a strong resistance close to the level of $ 5,130. The indicated level of $ 5,130 was an earlier support and is now a barrier for buyers.
It looks like there could be further downward pressure on support levels of $ 4,950 or $ 4,900 before the price starts a new hike. The $ 4,800 level is also an important support since it is a pivot area and coincides with the moving average of 100 single (4 hours). Therefore, if there are more disadvantages, the price should remain supported around $ 4,900 or $ 4,800.
Looking at the chart, bitcoin is trading well in an uptrend as long as it exceeds $ 4,800 and the single moving average (4 hours). If the closing is below 100 ADMs, the price could fall to the $ 4,500 level. Conversely, the price is expected to rebound to more than $ 5,150 and $ 5,200 in the near term.
Technical indicators
4 hours MACD – The MACD for BTC / USD is about to go into bullish zone.
RSI (relative strength index) 4 hours – The RSI for BTC / USD is placed just below level 50.
Major Support Level – $ 4,900
Major resistance level – $ 5,150
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