Bitcoin Price Weekly Analysis – Sell Until This Change

Key Points

  • Bitcoin price managed to recover some ground this past week, but found resistance near a major level at $420.
  • There is a bearish trend line formed on the 4-hours chart (data feed from Bitstamp), which acted as a barrier for the price.
  • The price also struggled to clear the 100 simple moving average on the 4-hours chart, which is a bearish sign.

Bitcoin price climbed higher this past week. However, it failed right around a major resistance area, which is now calling for a decline.

Bitcoin Price- Sell Near 100 SMA?

Bitcoin price attempted to recover this past week, and it succeeded to a great extent, as it moved above the $400 level. However, the upside was stalled near a major resistance area of $420. There is a bearish trend line formed on the 4-hours chart (data feed from Bitstamp), which prevented the upside move and pushed the price down once again.

The most important point to note is the fact that the $420 level represents a major confluence resistance area. The 100 simple moving average on the 4-hours chart is positioned around it. Moreover, the 61.8% Fib retracement level of the last drop from the $442 high to $382 low is also around the stated level. In short, the $420 level represents a major resistance area and could continue to act as a barrier. So, you may consider selling as long as the price is below it.

Bitcoin Price Weekly Analysis

A break above it could take the price towards the 76.4% Fib retracement level of the last drop from the $442 high to $382 low. On the downside, the most important support is at $400.

Looking at the technical indicators:

4-hours MACD – The MACD is in the bearish slope, and pointing towards more losses.

4-hours RSI (Relative Strength Index) – The RSI is below the 50 level, calling for more losses.

Intraday Support Level – $400

Intraday Resistance Level – $420

Charts from Bitstamp; hosted by Trading View

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