- Bitcoin price looks like created a short-term top and might be heading lower moving ahead.
- There is a major support around 270.0 which holds the key in the near term.
Bitcoin price declined this past week as we forecasted earlier and looks set for more losses.
After the price traded close to 320.0 we witnessed a declining phase which was completed around 272.0. The price after finding support around 272.0 traded higher, but failed to maintain gains and stalled at the 50% Fib retracement level of the last drop from 320.0 to 272.0. It means that a short-term correction is likely over and the price might continue to move lower in the near term.
Trend Line as Resistance
There is a major bearish trend line formed on the 4-hours chart of the Bitcoin price chart, which is acting as a hurdle for buyers. There were a couple of attempts to trade above the highlighted trend line, but sellers defended the upside successfully moving ahead. The most important point is the fact that the price is now below the 100 4-hours simple moving average, which is a bearish sign. So, if the price corrects higher from the current levels, then it could struggle to clear the 100 SMA, followed by the highlighted bearish trend line.
On the downside, the last low of 272.00 holds the key for more losses in the near future. A break below the same might take the price towards 260.00. Any further losses could ignite a move towards the all-important 250.00 support area. The H4 RSI is around the oversold reading, which is a ray of hope for buyers pointing towards a wave up moving ahead.
Intraday Support Level – 272.00
Intraday Resistance Level – 285.00
Originally appeared at: http://www.newsbtc.com/2015/08/02/bitcoin-price-weekly-analysis-more-losses-ahead/