Bitcoin Price Weekly Analysis –BTC/USD Facing Major Resistance

Key Points

  • Bitcoin price after declining close to the $540 level against the US dollar managed to recover well.
  • BTC/USD traded above the $600 level once again, but currently facing a major resistance area near $675.
  • There is a bearish trend line formed on the 4-hours chart (data feed from Bitstamp) of BTC/USD, which is acting as a hurdle for more gains.

Bitcoin price is forming a nice bullish pattern, but currently facing as a critical resistance area, which holds the key for BTC/USD in the near term.

Bitcoin Price Resistance

Bitcoin price after a sharp fall from $780 to $540 managed to gain bids, and then started to recover. During the upside move, it broke the 38.2% Fib retracement level of the last drop from the $760 high to $540 low. It means the strength of the recent move was excellent, and may call for more gains in the near term.

However, the price is currently facing a major hurdle on the upside around a bearish trend line formed on the 4-hours chart (data feed from Bitstamp) of BTC/USD. There are two more elements aligned around the trend line resistance. First, the 100 simple moving average on the 4-hours chart, and the second is the 61.8% Fib retracement level of the last drop from the $760 high to $540 low. Both along with the trend line is acting as a major resistance area for BTC.

Bitcoin Price Weekly Analysis

Bitcoin Price Weekly Analysis

A break above it could trigger more gains. However, I think there are chances of a move down in BTC as long as it is below the 100 SMA (H4).

Looking at the technical indicators:

4-hours MACD – The MACD is in the bullish slope, but it is showing signs of a move towards the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI just moved below the 50 level, which is a negative sign for buyers.

Major Support Level – $620

Major Resistance Level – $680

 

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.

<!–

–>


mm

TheBitcoinNews.com – leading Bitcoin News source since 2012

Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. The information does not constitute investment advice or an offer to invest.