Bitcoin Price Weekly Analysis – Buyers Be Careful

Key Points

  • Bitcoin price struggled a lot this past week and failed time and again to close above a major resistance near $420.
  • There is a bearish trend line formed on the 4-hours chart (data feed from Bitstamp), which prevented the upside move and stalled gains.
  • The 100 simple moving average on the 4-hours chart is acting as a catalyst for the downside move and helping bears to gain strength.

Bitcoin price after failing to move higher moved down. Can it settle below $400 and head down for more losses in the near term?

Bitcoin Price- More Losses Ahead?

Bitcoin price struggled a lot this past week and failed to move higher. There is a major resistance area formed near $420-425 levels, which is acting as a monster hurdle for more gains. There is a bearish trend line formed on the 4-hours chart (data feed from Bitstamp), which is aligned around the stated resistance area to stall an upside move. The price moved below the 23.6% Fib retracement level of the last leg from the $382 low to $421 high, suggesting the bulls are moving away.

Moreover, the 100 simple moving average on the 4-hours chart is also above the current price is near the highlighted trend line and resistance area. Overall, it looks like there is a major barrier formed near $420-425 and it won’t be easy for the bulls to take control and break the highlighted resistance area.

Bitcoin Price Weekly Analysis

Bitcoin Price Weekly Analysis

There is a chance that the price moves down from the current levels and even test the 50% Fib retracement level of the last leg from the $382 low to $421 high at $400. A break below it may call for more losses moving ahead.

Looking at the technical indicators:

4-hours MACD – The MACD is in the bearish slope, and suggesting a downside move.

4-hours RSI (Relative Strength Index) – The RSI is also below the 50 level, which is a bearish sign.

Intraday Support Level – $400

Intraday Resistance Level – $420

 

Charts from Bitstamp; hosted by Trading View

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