- The ascending trendline has been a significant support to Bitcoin’s bullish momentum.
- BTC/USD is right on the verge of a breakout with the bulls eyeing $5,400.
BTC/USD bull market has entered the second week. In the rally last week, Bitcoin experienced a breakout after zooming above certain key levels at $4,200 and later at $5,200. In spite of the correction from the weekly highs at $5,351 BTC/USD has sustained the bullish bias buy staying above the rising trendline.
BTC/USD short-term outlook: 4-hour chart
The 4-hour chart shows dancing at $5,277 after securing its position above the key breakout level at $5,200. BTC/USD is expected to trend higher while forming higher highs and higher lows to the extent of touch $5,400 during the trading sessions today. There is a steady rise in the Relative Strength Index (RSI). The indicator in the 4-hour timeframe has not below 60, besides it has recovered back into the overbought above 70 at the time of writing.
Another indicator of a continued bullish moment is the gap between the moving averages. Both the 50 SMA and the 100 SMA are still playing catch to the rising price. The 50 SMA above the 100 SMA means that the bulls are still in charge.
In terms of support levels, the trendline has been working as a significant barrier preventing declines. Other support levels are observed at $5,000 former pivotal level, the 61.8% Fib retracement level between the last swing high of $5.351 and a swing low of $3,877.54 roughly at $4,800, the 50 SMA 4-hour, 100 SMA 4-hour, $4,200 and finally $4,000.
Key Technical Levels:
Major support 1: $4,800
Major support 2: $4,000
Resistance 1: $5,300
Resistance 2: $5,351
The 61.8% Fib retracement level
RSI 4-hour: 71.69
50 SMA 4-hour
100 SMA 4-hour
BTC/USD 1-week chart outlook
The weekly chart shows BTC/USD having broken past the trendline resistance. The digital asset has spiked above $5,200 and dancing at $5,280. BTC/USD is right on the verge of a breakout with the bulls eyeing $5,400. Meanwhile, the 50 SMA weekly is limiting gains currently at $5,612.06 and the 100 SMA currently at $6,344.43. The long-term outlook for Bitcoin is also bullish bias with further correction upside expected throughout this week.
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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