Bitcoin Price Analysis: BTC/USD Under Bearish Pressure
Bitcoin price was under a lot of pressure this week with all drama surrounding about its founder and all. BTC/USD traded lower and tested the $440.0 support area where it found buyers.
There was a bullish trend line formed on the hourly chart of the BTC to USD (data feed via Bitstamp), which was broken during the downside drift. The most important point is that the price also settled below the 100 hourly simple moving average, which is a bearish sign.
Bitcoin Price Recovery?
After trading as low as $438.60, the BTC/USD price started a recovery. However, the correction phase was stalled near the 50% Fib retracement level of the last drop from the $453 high to $438 low.
The failure occurred just below the broken trend line, which also acted as a hurdle for the BTC buyers. There is a chance that the price may spike one more time to test the broken support trend line.
However, as long as the price is below it, more losses are likely. The most critical resistance on the upside can be near the 100 hourly simple moving average, which is now coinciding with the 76.4% Fib retracement level of the last drop from the $453 high to $438 low.
On the downside, a break below the recent low of $438 may take Bictoin price towards the $430 levels. The hourly RSI is below the 50 level, which is a negative sign for the buyers and may weigh on the market sentiment. Moreover, the MACD is about to move to the bearish slope, suggesting a downside move in the short term.
If you are a seller and looking to enter a sell trade, then you can plan on selling near the broken trend line with a stop of an hourly close above the 100 hourly SMA.
Chart Source – TradingView.com and data feed by Bitstamp