Bitcoin Price Weekly Analysis –BTC/USD To Weaken Further?

Key Points

  • Bitcoin price after trading close to the $682-84 levels against the US Dollar found sellers, and moved down.
  • There were a couple of bullish trend lines formed on the 4-hours chart (data feed from Bitstamp) of BTC/USD, which were broken during the downside move.
  • The price is also below the 100 simple moving average on the 4-hours chart, calling for more losses in the short term.

Bitcoin price failed to trade towards $700 against the US Dollar, and it looks like the price is setting up for a decline moving ahead.

Bitcoin Price Sell?

Bitcoin price this past week traded towards the $685 level against the US Dollar, but failed to retain the bullish bias, and started to trade down. It broke the 23.6% Fib retracement level of the last wave from the $606 low to $682 high, which opened the gates for more declines in the short term.

Furthermore, during the downside move, the BTC/USD pair broke a couple of important support area. First, there were a couple of bullish trend lines formed on the 4-hours chart (data feed from Bitstamp) of BTC/USD. Second, the price closed below the 100 simple moving average on the same chart. So, we can say there are enough signs on the chart suggesting the price is under a bearish pressure.

Bitcoin Price Weekly Analysis

Bitcoin Price Weekly Analysis

Currently, the price is finding support near the 50% Fib retracement level of the last wave from the $606 low to $682 high. A break and close below it could ignite a move towards the $630 level. Any further declines may even take the price towards the next major support of $620.

Looking at the technical indicators:

4-hours MACD – The MACD is in the bearish slope, which is a bearish sign for BTC.

4-hours RSI (Relative Strength Index) – The RSI is well below the 50 level, pointing towards the amount of bearish pressure on BTC.

Major Support Level – $630

Major Resistance Level – $660

 

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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