Bitcoin Price Analysis: BTC/USD Just Turned Bearish
Bitcoin price after trading as high as $458 vs the US Dollar found sellers and started to move down. There was a crucial bullish trend line formed on the hourly chart (data feed via Bitstamp), which was broken during the downside action.
The price also moved and settled below the 100 hourly simple moving average, which encouraged sellers to gain strength in the short term.
Bitcoin price to move down?
Bitcoin price was seen struggling during the past couple of sessions vs the US dollar, and as a result, there was a downside move. Yesterday, I highlighted a bullish trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD. The price broke the support trend line and settled below it.
The price after the break traded as low as $451 where the bulls managed to hold the downside. BTC/USD is currently attempting a recovery, but facing sellers near the 50% Fib retracement level of the last drop from the $458 high to $451 low.
Moreover, the 100 hourly SMA is also acting as a hurdle for a recovery in BTC. Let us see how long the price can stay around it, and whether it will break it or move down once again.
As per my view, the chances of another downside move are very high. So, if you are looking to sell, then you should keep a close eye on the 100 SMA. If the price settles above it, then it may negate the current bearish view for BTC.
The hourly RSI is well below the 50 level, which is a bearish sign for the BTC buyers and a sign of more losses in the short term.
Chart Source – TradingView.com and data feed by Bitstamp