Bitcoin Price Technical Analysis – Slow and Steady Downtrend

Key Points

  • Bitcoin price moved down this past week, and it looks like it may break down in the short term for a move towards $402-00.
  • There is an ascending channel pattern formed on the hourly chart (data feed from Bitstamp), which is at a risk of a break down.
  • BTCUSD is trading well below the 100 hourly simple moving average, suggesting sellers are in control.

Bitcoin price failed to trade higher this past week. Currently, BTCUSD is facing a lot of offers and looks poised for a down move.

Bitcoin Price – Sell with a break?

Bitcoin price showed no signs that the bulls can defend the downside move, and traded below the $410 support area. If we look at all major technical indicators, then there is hardly any sign of the price gaining traction. Looking at the hourly chart, there is an ascending channel pattern formed (data feed from Bitstamp), which may play a crucial role in the near term.

The price is currently trading near the channel support trend line, and the last three hourly candles are super bearish. It looks like the price may break the support area and trade near the last swing low of $403. Recently, the upside was stalled near the 50% Fib retracement level of the last drop from the $419 high to $403 low, suggesting that a short-term correction is over and the price could face more losses.

Bitcoin Price Technical Analysis

On the upside, the 100 hourly simple moving average remains a major hurdle for the bulls. As long as the price is below it, the bulls may find it hard to take BTCUSD higher.

Looking at the technical indicators:

Hourly MACD – The hourly MACD is in the bearish zone, suggesting a downside move.

RSI (Relative Strength Index) – The RSI is below the 50 levels, signaling seller’s strength.

Intraday Support Level – $403

Intraday Resistance Level – $412

Charts from Bitstamp; hosted by Trading View

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