Weekly Analysis of BTC-USD

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
Bitcoin posted a strong upside rally and closed the last weekly candle with more than 12% gains. It formed a bullish weekly candle and made a high of $42,605 but in the last two days, traders rushed to book profits at higher levels and closed the week slightly below $40K. AT the time of writing, BTC is trading around $40,090.

On the Daily TF, BTC is now sustaining above its major DEMA’s which depicts that further buying strength is most likely to increase in the coming days. Currently, BTC is trading in the Fibonacci levels of 0.786 and 0.618, which is placed at $34.7K and $43K.

However, the resistive level of $42K is very critical for the next upside rally. Once we get a decisive breakout from this range, the next potential target is placed at $45.5K followed by $48.5K. On the downside, the nearest support is present at $39K, if it breaks this level on a closing basis, the next support is present at $36.5K followed by $34.5K.

Weekly MACD is about to give a positive crossover which suggests that BTC has started to turn bullish and we can expect trend reversal in the coming week. The daily RSI has given a clear breakout from its trendline resistance which also depicts the same. However, a weekly closing above the level of $41K would act as a confirmation of the trend reversal.