Key Points
- Bitcoin price moved down sharply this past week to trade close to the $700 handle against the US dollar before starting a recovery.
- There is a recovery underway, as there is a flag pattern formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD.
- The price is currently facing a couple of important resistance levels, including $850 and $880.
Bitcoin price after a sharp decline towards $700 against the US dollar started a recovery. But it looks like upsides in BTC/USD are contained.
Bitcoin Price Resistances
There was a nasty decline in Bitcoin price against the US Dollar, as it declined from $1150 to $700, weakening by more than 20%. Later, the price found support near $707 from where a recovery was started. The price is currently above the $800 level, but facing sellers near the 23.6% Fib retracement level of the last decline from the $1302 high to $707 low (data feed from SimpleFX).
There is currently a flag pattern formed on the 4-hours chart of BTC/USD, which is acting as a recovery mode. The price is struggling to break the $845-850 levels, which is also around the flag resistance area. The price is currently trading near the flag support area, which is holding the downside. A break below it could stop the current recovery, and may push the price down.
On the upside, a close above $850 is needed for a move towards the 38.2% Fib retracement level of the last decline from the $1302 high to $707 low. Overall, it looks like the price is struggling, and upsides are contained near $850. If there is no break, the price may move into the bearish zone again.
Looking at the technical indicators:
4-hours MACD – The MACD is attempting to change the slope from bearish to bullish.
4-hours RSI (Relative Strength Index) – The RSI is currently below the 50 level, and attempting a break.
Major Support Level – $800
Major Resistance Level – $845-850
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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