Bitcoin Price Weekly Analysis – BTC/USD To Decline Further

Key Points

• Bitcoin price struggled to settle above the $2775-2800 resistance against the US Dollar, and moved down.
• There is a crucial bearish trend line with resistance at $2680 forming on the 4-hours chart of BTC/USD (data feed from SimpleFX).
• The price is currently under pressure and may head lower towards the $2300 support.

Bitcoin price is currently below $2600 against the US Dollar, and it looks like BTC/USD may decline further and trade towards the $2320-2300 support.

Bitcoin Price Resistance

It seems like Bitcoin price is finding it hard to break the $2800 resistance against the US Dollar. The price tested the stated resistance on a few occasions, but failed to break it. There was a decline towards $2050 from where the price recovered well and surged above $2500. However, the price once again struggled to break the $2750-2800 resistance and moved down.

Actually, there is a declining bearish trend line with resistance at $2680 forming on the 4-hours chart of BTC/USD. It is acting as a giant resistance and preventing further gains above $2800. The 100 simple moving average (H4) is also below the trend line at $2620. So, we can say there are many hurdles on the way up for BTC near $2700 and $2800. It is once again trading lower and already breached the 23.6% Fib retracement level of the last wave from the $2043 low to $2774 high.

So, there are chances of further declines, and the price is likely to test the $2320 support. An intermediate support is at 50% Fib retracement level of the last wave from the $2043 low to $2774 high at $2408. On the downside, there is a connecting bullish trend line at $2250. It means if the price dips, buyers may take a stand near $2320-2250.

Looking at the technical indicators:

4-hours MACD – The MACD has started moving into the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI is currently near the oversold readings.

Major Support Level – $2320

Major Resistance Level – $2700

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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