- BTC/USD is trading at $4,952 but all eyes are set on reclaiming the support at $5,000.
- Bitcoin’s medium-term and long-term outlook remain strongly positive.
BTC/USD recently embarked on an incredible journey of breaking barriers above towards $5,400. The 4-hour chart shows the uptrend was supported slightly above $4,000 by both 50 SMA and the 100 SMA. On breaking above $23.6% Fib retracement level with the last upswing at $5,338.27 and a swing low of $3,865.24, BTC/USD sprung up an engulfing candlestick. A struggle encountered at the 61.8% Fibonacci level allowed the bulls to form an uptrend and push for correction above $5,000 and eventually hit highs around $5,338.27.
The retracement from the weekly high has been supported by the 61.8% Fib retracement level (key support) slightly below $4,800. At present, there is a growing bullish momentum above the short-term trendline. BTC/USD is trading at $4,952 but all eyes are set on reclaiming the support at $5,000. The short-term bullish bias is also supported by the RSI 4-hour. The indicator has reversed the slope upwards from 59.23 to the current 68.58. It is only a matter of time before it breaches its way into the overbought in turn giving the buyers confidence to increase their positions. Moreover, another bullish indicator is the widening gap between the 50 SMA and the 100 SMA.
BTC/USD Weekly Chart Outlook
In spite of the correction, Bitcoin’s medium-term and long-term outlook remain strongly positive. The weekly range shows the price bullish above the descending trendline resistance. The next target has been set on $6,000 but first, the buyers must clear the resistance at the 50 SMA. In addition to that, Bitcoin is still supported within a core range between $3,189.94 and $6,000. The RSI 1-week is also trending steadily upwards to showing that the trending is favoring the buyers. Bitcoin is likely to regain its position above $5,000 and correct higher towards the weekly high at $5,338.27.
Key Technical Levels
Support 1: 61.8% Fib level 4-hour
Support 2: $4,700
Trend: Short-Term-Bullish, Long-Term- Bullish
Resistance 1: $,5000
Resistance 2: $5,200
Resistance 3: $5,343.27
50 SMA 4-hour: $4,400
100 SMA 4-hour: $4,200
50 SMA weekly: 5,703.73
100 SMA weekly: $6,338.29
RSI (21) weekly: 50.00
RSI (21) 4-hour: 68.58
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige