Bitcoin Price Weekly Analysis: The Big Picture for BTC/USD

(The original article was published at 9:00AM 2016-03-27 in the US, which is 9 hours slower than Beijing time, i.e. Beijing time: 2016/03/27 18:00)

Bitcoin price key points

1. The past few weeks have been a torment for many traders as there has been no real movement on the BTC/USD chart.

2. If we look at the weekly chart provided by Bitstamp, we can see that there is an important resistance line around $490-525 (￥3190-3418).

3. Bitcoin may try to break through the above resistance line, but if it does break through, the price of the currency may gain.

The price of the coin has been trading in a range for the past week. Will buyers succeed in pushing the price higher, or will sellers force a downward move?

Price — $490-525 (￥3190-3418) as resistance zone

Last week, the price managed to stabilize above the key support area of ​​$400 (￥2604) and tried to jump over the key resistance area of ​​$425 (￥2767) several times. The price of the currency is mostly trading in the range of $400-425 (￥2604-2767), and the support and resistance areas in this range can be used as buying and selling areas respectively.

Now, if we look at the big picture and try to analyze the weekly chart, then we will know that the price is trading below the dangerous resistance zone. An important resistance band area is formed around $490-525 (￥3190-3418) which can be seen on the weekly chart. This band area has previously served as a support and resistance area many times. Therefore, this can serve as an important key area.

The price is now above the 100 weekly SMA, which is a positive sign for the bulls. The price is likely to continue to consolidate in a small range for several more times before breaking out of the resistance zone to the upside or breaking out of the 100 weekly SMA to the downside.

Technical indicators

Weekly MACD – The MACD is flat, which means there are no major changes in the price of the currency.

Weekly RSI (Relative Strength Index) – The RSI is above the 50 level, pointing to buyer strength.

Weekly support line——$400（￥2604）

Weekly resistance line——$440（￥3305）

Source: NewsBTC

Compiled by: really thinker@Sousou Bitcoin

URL: http://www.newsbtc.com/2016/03/27/bitcoin-price-weekly-analysis-big-picture-btcusd/