Bitcoin Price Weekly Analysis – BTC/USD Back Testing Resistance

Key Points

• Bitcoin price dived against the US Dollar before ending the week and closed below $1000.
• The BTC/USD pair is now back trading higher, but facing a major confluence resistance near $960-980 on the 4-hours chart (data feed from SimpleFX).
• The price is also below the 100 simple moving average on the same chart, which may act as a resistance near $975.

Bitcoin price after a major downside move towards $820 against the US Dollar started recovering. Can BTC/USD overcome the $980 resistance again?

Bitcoin Price Resistance

We saw this past week how Bitcoin price made a new all-time high against the US Dollar to trade above the $1150 mark. Later, there was a solid downside move, taking the price lower by more than 20%. The price fell below the $1000 level and traded as low as $823 (data feed from SimpleFX). The price started moving higher once again, and moved above the 23.6% fib retracement level of the last decline from the $1302 high to $823 low.

However, the price is now approaching a monster resistance area of $960-980. The same area was a resistance earlier, and may now once again attempt to stop the upside move. Moreover, the 100 simple moving average is also around the same confluence resistance area near $975. Lastly, the 38.2% fib retracement level of the last decline from the $1302 high to $823 low is also waiting to act as a resistance on the upside.

So, if the BTC buyers have to take control once again, they need to push the price back above the $980 resistance at least. However, a daily close above $1000 is needed for more gains in the near term. Else, there is a chance of a downside reaction one more time.

Looking at the technical indicators:

4-hours MACD – The MACD is back in the bearish zone

4-hours RSI (Relative Strength Index) – The RSI is currently attempting to break the 50 level towards the upside, which is a positive sign.

Major Support Level – $900

Major Resistance Level – $980

 

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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