Bitcoin Price Weekly Analysis – BTC/USD Resume Its Downtrend

Key Points

• Bitcoin price failed to gain traction, and moved below the $1000 level against the US Dollar.
• There are two bearish trend lines with resistance near $1040-1060 formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD.
• The price might correct higher in the near term, but broadly remains under a bearish pressure.

Bitcoin price made a nice downside move recently below $950 against the US Dollar, and now BTC/USD could extend declines in the near term.

Bitcoin Price Resistance and Barriers

This past week, I mentioned that BTC price might soon escalate declines against the US Dollar. The price did move down, and broke a couple of supports like $1020 and $1000. The price traded as low as $888 from where there was a minor correction initiated. The price declined in a proper downtrend with 3-waves from $1140. First, there was a decline to $950, and then a correction towards $1120. Now, the price declined in the third wave below the $940 level towards $888.

At the moment, the price is correcting higher, and already moved above 23.6% Fib retracement level of the last decline from the $1119 high to $888 low. However, there are many resistances waiting on the upside near $1004 and $1040. First, the 50% Fib retracement level of the last decline from the $1119 high to $888 low is at $1004. Then, there are two bearish trend lines near $1040-1060 on the 4-hours chart (data feed from SimpleFX) of BTC/USD. Also, the 100 simple moving average (4H) is around the same trend line resistance near $1040.

So, we can say that there is a major resistance formed near $1040-50 where one might consider selling if the price moves higher.

Looking at the technical indicators:

4-hours MACD – The MACD is now well placed into the bearish slope.

4-hours RSI (Relative Strength Index) – The RSI is correcting higher, but remains below the 50 level.

Major Support Level – $900

Major Resistance Level – $1050

 

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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