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Bitcoin price may have made a short-term top near $1240 against the US Dollar, but dips remain supported in BTC/USD in the near term.

Bitcoin price may have made a short-term top near $1240 against the US Dollar, but dips remain supported in BTC/USD in the near term.

There was a solid increase in Bitcoin price, as it moved above $1200 against the US Dollar. The price started an upside move, and broke a couple of resistance levels like $1160 and $1185 to set an uptrend. The best part was a close above the 100 simple moving average (H4) at $1165. Moreover, the price was also able to break the 1.618 extension of the last decline from the $1120 high to $889 low. It ignited a sharp upside move and the price moved above $1200.

A new monthly high was formed near $1239 from there the price started correcting lower. The price has corrected lower, and broken a bullish trend line at $1224 on the 4-hours chart. This is a short-term bearish sign, and may call for more losses. At the moment, the BTC/USD pair is trading near another bullish trend line at $1190. It is acting as a support along with the 23.6% Fib retracement level of the last wave from the $889 low to $1239 high.

Moreover, the 100 simple moving average (H4) at $1160 is waiting to act as a support if the price moves down further. In my view, the price is under a short-term correction mode, but remains supported as long as above $1165.

Looking at the technical indicators:

4-hours MACD The MACD is currently flat.

4-hours RSI (Relative Strength Index) The RSI is struggling to hold the 50 level.

Major Support Level $1160

Major Resistance Level $1220

Charts courtesy SimpleFX

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Bitcoin Price Weekly Analysis BTC/USD Top Formed - NEWSBTC - newsBTC