Bitcoin Price Weekly Analysis – BTC/USD Approaching Crucial Break

Key Points

• Bitcoin price recoveries faced sellers towards $2550 against the US Dollar, and slowly declined lower.
• There is a major contracting triangle pattern with support at $2300 forming on the 4-hours chart of BTC/USD (data feed from SimpleFX).
• A break and close below $2300 could ignite further declines towards the $2120 level.

Bitcoin price is approaching a major break below $2300 against the US Dollar, and it looks like BTC/USD may continue to struggle below $2400.

Bitcoin Price Support

It was mostly a tough week for Bitcoin price below the $2500 level against the US Dollar. The price attempted recoveries on a couple of occasions above the $2400 and $2500 levels, but failed. There was a downside move initiated below $2500 and the price followed a bearish pattern. It has already moved below the 50% Fib retracement level of the last wave from the $2204 low to $2557 high.

There is a monster contracting triangle pattern with support at $2300 forming on the 4-hours chart of BTC/USD. It may play a major role in the near term for the next move, which could be mostly below $2300. On the upside, the triangle resistance trend line at $2470 is a key barrier. It also coincides with the 100 simple moving average (H4) at $2475. Since the price is already below the 61.8% Fib retracement level of the last wave from the $2204 low to $2557 high, it could retest $224.

If there is a break and close below the triangle support at $2300, there are chances of a move towards $2100. The overall trend is bearish for BTC/USD and it may trade lower towards $2100-2000 in the short term.

Looking at the technical indicators:

4-hours MACD – The MACD is gaining pace in the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI is well below the 50 level and heading lower.

Major Support Level – $2300

Major Resistance Level – $2450

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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