Bitcoin Price Weekly Analysis – BTC/USD At Major Turning Point

Key Points

  • Bitcoin price after trading close to $425 this past week against the US Dollar found sellers and moved down.
  • BTC/USD tested a bullish trend line on the 4-hours chart (data feed from Bitstamp), which provided support and prevented a break.
  • The price is testing the 100 simple moving average on the same chart, which is acting as a resistance and can be seen as a major hurdle for the bulls.

Bitcoin price traded below 100 SMA (H4 chart) recently, which is acting as a resistance now. A break above it is needed for BTC/USD to gain momentum.

Bitcoin Price – Buy with a break?

Bitcoin price traded a few points higher this past week, but it struggled once again to break the $425-30 resistance area and started to move down. During the downside drift BTC/USD broke the 100 simple moving average (H4 chart), which can be considered as a crucial break. However, the price found support near a bullish trend line on the 4-hours chart (data feed from Bitstamp) of BTC to USD.

There was a sharp reaction noted around the trend line support from where the price bounced back. However, the broken 100 SMA (H4 chart) is currently acting as a resistance for more gains. It can act as a turning point for Bitcoin price. If BTC/USD breaks it and the price settles above 100 SMA, then more upsides are possible. One may consider buying with a break and close above it with a tight stop of around 2 points.

Bitcoin Price Weekly Analysis

Bitcoin Price Weekly Analysis

Buying dips may also not be a bad idea as long as BTC/USD is above the trend line support with a stop below the same.

Looking at the technical indicators:

4-hours MACD – The MACD is in the bearish zone, which means the bears have an upper hand.

4-hours RSI (Relative Strength Index) – The RSI is below the 50 level, which is a bearish sign as long as the price is below the 100 SMA.

Major Support Level – $412

Major Resistance Level – $425

 

Charts from Bitstamp; hosted by Trading View

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

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