Bitcoin Price Weekly Analysis: BTC/USD’s Next Target $8,500

Key Points

  • Bitcoin price gained momentum and settled above $7,200 against the US Dollar.
  • There is a major bullish trend line forming with support at $7,000 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to make the next move either above $7,600 or below $7,240 in the near term.

Bitcoin price is placed nicely in an uptrend above $7,000 against the US Dollar. BTC/USD is eyeing the next break either above $7,600 or below $7,240.

Bitcoin Price Range Pattern

This past week, there was a major upside move above the $6,800 resistance in bitcoin price against the US Dollar. The BTC/USD pair jumped above the $7,000 and $7,200 resistance levels to gain traction. It even spiked above the $7,500 resistance and traded as high as $7,672. Later, the price started trading in a range below the $7,650 resistance area and is currently preparing for the next move.

The price recently tested the 23.6% Fib retracement level of the last wave from the $6,079 low to $7,672 high. However, declines were limited and the price remained well supported above the $7,250 level. It seems like there is a key range forming with resistance near $7,600 and support at $7,240. Should there be a break below the $7,240 support, the price could decline towards the next support at $7,000. Moreover, there is a major bullish trend line forming with support at $7,000 on the 4-hours chart of the BTC/USD pair. Around the trend line, the 50% Fib retracement level of the last wave from the $6,079 low to $7,672 high is also a strong support.

Looking at the chart, the price is most likely to break the $7,600 resistance for more gains towards $8,000 and $8,500. In the second case, dips remain well supported near the $7,240 and $7,000 levels.

Looking at the technical indicators:

4-hours MACD – The MACD for BTC/USD is reducing its bearish slope with bullish signs.

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

Major Support Level – $7,000

Major Resistance Level – $7,600

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