Bitcoin Price Weekly Analysis – BTC/USD Decline Looks Fake?

Key Points

• Bitcoin price saw a lot of swing moves recently against the US dollar due to the SEC verdict to list Bitcoin ETF.
• The price was rejected completely near a bearish line on the 4-hours chart (data feed from SimpleFX) of BTC/USD near $1184.
• However, the price is losing the steam, and remains at a risk of a downside move.

Bitcoin price made a sharp downside move after the SEC predict on ETF, but is this decline in BTC/USD real or fake?

Bitcoin Price Downside Move and ETF Decision

There was a major event lined up recently, as the U.S. Securities and Exchange Commission announced their verdict to list the Bitcoin ETF. They decided against, and disapproved the request, which produced a sharp downside move in Bitcoin price. The BTC/USD pair was earlier seen trading close to $1200, but after the decision, the price declined. A new downside wave was initiated, as the price moved from the $1184 high to the $1061 low.

The recent rejection near $1184 was crucial, as a bearish line on the 4-hours chart (data feed from SimpleFX) of BTC/USD acted as a hurdle. The price also moved below the 100-hourly simple moving average (H4) at $1157. However, the sharp downside move found support near $1060, and the price recovered. The price has already moved above the 50% Fib retracement level of the last decline from the $1184 high to $1061.

At the moment, the price is attempting to move past the 76.4% Fib retracement level of the last decline from the $1184 high to $1061. If that happens, the price could head above the highlighted bearish trend line. However, a break won’t be easy, but no doubt, the price has recovered well and the decline looks fake.

Looking at the technical indicators:

4-hours MACD – The MACD has reduced most of its bearish slope, which is a positive sign.

4-hours RSI (Relative Strength Index) – The RSI is attempting to move back above the 50 level.

Major Support Level – $1100

Major Resistance Level – $1185

 

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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