Bitcoin Price Weekly Analysis – Can BTC/USD Break This?

Key Points

• Bitcoin price has started a recovery from the $2965 low against the US Dollar and already moved above $3500.
• There is a monster bearish trend line with resistance near $3850 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
• The pair has to break the 43850-4000 resistance to gain momentum in the near term.

Bitcoin price is recovering above $3500 against the US Dollar. However, the BTC/USD pair is now facing a major hurdle near $3850 for further gains.

Bitcoin Price Resistance

This past week, Bitcoin price managed to recover above the $4000 level once against the US Dollar. The price traded as high as $4106 where it faced sellers and declined once again. The pair traded below the 38.2% Fib retracement level of the last wave from the $2965 low to $4106 high. However, the downside move found support near $3500 and the price is now back moving north.

It was a perfect test of the 50% Fib retracement level of the last wave from the $2965 low to $4106 high. Buyers are now facing a crucial test near $3800-3850. There is a monster bearish trend line with resistance near $3850 on the 4-hours chart of BTC/USD. The trend line resistance is also near the 100 simple moving average (H4) at $3900. Therefore, a break and close of the $3850-3900 resistance won’t be easy. We can already see the price is losing momentum below $3850.

If the price fails to move above the $3850 level, there can be another downside wave. On the downside, a few key supports are $3600 and $3500. Below $3500, the price could even retest the $3200 level in the near term. On the upside, a close above $4000 would be a great bullish sign.

Looking at the technical indicators:

4-hours MACD – The MACD is still in the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI is currently around 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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