Bitcoin Price Weekly Analysis – BTC/USD To Escalate Declines

Key Points

• Bitcoin price traded towards $1180 against the US Dollar on a couple of occasions and failed.
• The price moved down sharply and formed a bearish line on the 4-hours chart (data feed from SimpleFX) of BTC/USD with resistance near $1100.
• The price may continue its decline and could even settle below the $1000 level.

Bitcoin price has started a downside move after failing near $1180 on many occasions against the US Dollar, and BTC/USD now could extend losses.

Bitcoin Price to Lose Ground?

This past week we saw a decline in BTC price due to the U.S. Securities and Exchange Commission’s verdict on the Bitcoin ETF request. The price moved down, but was seen later recovering above $1050. However, there were many attempts by the price to settle above $1200. It failed every time to settle above the $1180 and $1200 levels. As a result, a decline was initiated in Bitcoin price. It moved down below $1050, and settled below the stated level.

I think the most important close was below $1100. It is a major pivot, and a crucial support. So, a close below $1100 is a bearish sign, and might call for more losses in the near term. The price eve traded below $1000 recently, and currently recovering. On the upside, an initial resistance is near 38.2% Fib retracement level of the last decline from the $1172 high to $936 low.

There is also a bearish line on the 4-hours chart (data feed from SimpleFX) of BTC/USD with resistance near $1100. The most important hurdle is near the 50% Fib retracement level of the last decline from the $1172 high to $936 low. So, selling rallies may be considered in the near term.

Looking at the technical indicators:

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

4-hours RSI (Relative Strength Index) – The RSI is well below the 50 level, and suggesting bearish signs.

Major Support Level – $980

Major Resistance Level – $1075

 

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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