Bitcoin Price Analysis: BTC/USD Downside Continuation
Bitcoin price continued to move down, and my yesterday’s idea of more losses in BTC/USD worked. Yesterday, it broke a major support trend line formed on the hourly chart of the BTC to USD (data feed via Bitstamp), which paved the way for more losses.
Moreover, a double top pattern on the same chart played its part well and ignited a downside move in BTC/USD. The price moved as low as $447 after the break.
Bitcoin price retest of lows?
Bitcoin price after tumbling managed to recover a few points from the $447 low. However, the upside move was stalled right around the broken bullish trend line formed on the hourly chart (highlighted in yesterday’s post as well).
However, the most important part was played by the 50% Fib retracement level of the last drop from the $465 high to $447 low, which suggests that the price completed a correction phase and may start to trade lower once again.
The price has already started to move down, and it looks like there is a strong chance of a move towards the last swing low of $447.
The price is also below the 100 hourly simple moving average, calling for more declines in BTC vs the US Dollar. There is now a minor bearish trend line formed on the same chart as well, which is acting as a hurdle for the bulls and taking the price down.
It is acting as a bearish bias catalyst and helping sellers to take the price down. One may continue to sell BTC/USD as long as the price is below the highlighted bearish trend line on the hourly chart.
The hourly RSI is below the 50 level, which supports the bearish view in the short term.
Chart Source – TradingView.com and data feed by Bitstamp