Bitcoin Price Weekly Analysis – BTC/USD To Struggle Above $4000

Key Points

• Bitcoin price after a nasty decline towards the $2965 level against the US Dollar found support.
• There are two major bearish trend lines forming with resistance near $3900-4000 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
• The pair might struggle to move back above the $4000 level considering the current market sentiment.

Bitcoin price declined sharply below $3000 against the US Dollar before recovering. BTC/USD now faces many hurdles near $3900-4000 for further recoveries.

Bitcoin Price Upside Hurdle

This past week, we saw a major decline in Bitcoin price from the $4400 swing high against the US Dollar. The price tumbled and moved below the $3500 and $3000 support levels. A low was formed at $2965 from where a recovery was initiated. The price moved above the 38.2% Fib retracement level of the last decline from the $4370 high to $2965 low. However, the upside move was capped near the $3800-3900 levels.

It seems like the 4-hours chart of BTC/USD is very similar to the 4-hours chart of ETH/USD considering the structure and resistances. The BTC/USD pair failed to break the 61.8% Fib retracement level of the last decline from the $4370 high to $2965 low. On the upside, there are two major bearish trend lines forming with resistance near $3900-4000 on the 4-hours chart. These trend lines are key and it won’t be easy for the price to move above $4000.

Moreover, the 100 simple moving average (H4) is positioned near $4230 to act as a monster resistance. As long as the price is below the $4000 level, there is a chance of another minor dip. On the downside, the $3500 and $3200 levels are important barriers for sellers.

Looking at the technical indicators:

4-hours MACD – The MACD has almost reduced the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI is currently just below the 50 level.

Major Support Level – $3500

Major Resistance Level – $4000

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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