Bitcoin Price Weekly Analysis – Can BTC/USD Break Higher?

Key Points

  • Bitcoin price after moving down towards the $600 level against the US dollar found support and started recovering.
  • There is a bearish trend line formed on the on the 4-hours chart (data feed from Bitstamp) of BTC/USD, which is currently acting as a resistance area.
  • Only a break and close above the 100 simple moving average (H4 chart) could trigger more gains in the near term.

Bitcoin price is currently struggling to break a major resistance area against the US Dollar, which might ignite the next move in BTC/USD.

Bitcoin Price Next Move

Bitcoin price mostly traded with a bearish tone against the US Dollar this past week, and every attempt to correct higher was seen as a sell opportunity. The BTC/USD pair even traded as low as $605 before starting a correction. The price is currently trading near a major resistance area, which is in the form of a bearish trend line on the on the 4-hours chart (data feed from Bitstamp) of BTC/USD.

The most important part is the fact that the 100 simple moving average (H4 chart) is also positioned around the trend line resistance. Moreover, the 50% Fib retracement level of the last drop from the $705 high to $605 low is also around the same trend line resistance area. All in all, there is a critical resistance zone formed near $660.

Bitcoin Price Weekly Analysis

Bitcoin Price Weekly Analysis

Only if the BTC bulls manage to break the stated level, there is a chance of more gains in the near term. Otherwise, the BTC/USD pair may move down once again. I think the chances of a move down in the short term is more compared with a move higher.

Looking at the technical indicators:

4-hours MACD – The MACD is about to move into the bearish slope, which is a not a good sign for the bulls.

4-hours RSI (Relative Strength Index) – The RSI is just around the 50 level, calling for a break.

Major Support Level – $630

Major Resistance Level – $660

 

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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