Bitcoin Price Weekly Analysis – BTC/USD To Correct Lower?

Key Points

  • Bitcoin price after trading as high as $758 started correcting lower against the US Dollar.
  • Recently, there was a break below a bullish trend line formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD.
  • The price is also below the 100 simple moving average, calling for further correction waves.

Bitcoin price recently corrected once against the US Dollar, but it looks like the BTC/USD pair may correct further towards the $680 level.

Bitcoin Price Resistance

BTC price gained recently to trade as high as $758 against the US Dollar where it found sellers and moved down. The downside move was sharp, and took the price towards the $665 level. Afterwards, there was a correction initiated during which the price traded above the 50% Fib retracement level of the last drop from the $758 high to $665 low.

However, the wave failed and could not gain momentum. There was a rejection around the 76.4% Fib retracement level of the last drop from the $758 high to $665 low. So, it looks like the price made a higher-low and turned down. It recently broke a bullish trend line formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD. It can be considered as a sign of further losses in the short term. The most important point is the fact that the price also traded below the 100 simple moving average on the same chart.

Bitcoin Price Weekly Analysis Bitcoin Price Weekly Analysis

It looks like the price may extend the current downside to test the 200 simple moving average (H4) at $680-85. It is where the BTC buyers may appear and try to defend the downside move. If you are planning to sell in the short term, then consider it near the 100 simple moving average with a tight stop for a move towards $690-88.

Looking at the technical indicators:

4-hours MACD – The MACD has just moved into the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI is well below the 50 level, signaling weakness.

Major Support Level – $685

Major Resistance Level – $715

 

Charts courtesy – SimpleFX

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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