Bitcoin Price Weekly Analysis – Can BTC/USD Stay Above $2000?

Key Points

• Bitcoin price fell sharply during the past few days and broke the $2400-2350 support against the US Dollar.
• There was a break below a major contracting triangle with support at $2420 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
• The price is currently trading near major pivot of $2000, and struggling to hold it.

Bitcoin price crashed below $2200 recently against the US Dollar, and now BTC/USD is struggling to hold a monster support area at $2000.

Bitcoin Price Breaks Down

This past week was mostly bearish for Bitcoin price, as it moved below the $2400 support area against the US Dollar. In the last weekly analysis, I highlighted a monster breakout pattern with support at $2400-20 on the 4-hours chart of BTC/USD. It seems like the pair failed to hold the same and settled below $2400. There was a sharp downside move, as the pair traded below the $2250 and $2100 support levels.

At the moment, the price is trading near another crucial support at $2000. Buyers are struggling to hold $2000, which is why BTC remains at risk. The $2000 support is very important, especially a daily close above or below $2000. If the price manages to avoid a daily close below $2000, there are strong chances of a recovery. On the other hand, if there is a close below $2000, there can be more declines towards $1800.

On the upside, there is a bearish trend line at $2150 on the 4-hours chart. Moreover, the 38.2% Fib retracement level of the last decline from the $2396 high to $1958 low might also act as a hurdle near $2125. Selling rallies near $2125-2150 may be considered in the short term.

Looking at the technical indicators:

4-hours MACD – The MACD is heavily bearish and signaling more declines

4-hours RSI (Relative Strength Index) – The RSI is attempting a recovery from the oversold levels.

Major Support Level – $2000

Major Resistance Level – $2150

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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