Bitcoin Price Analysis: BTC/USD Crashes Below $440

Bitcoin Price Analysis

Bitcoin price dived sharply vs the US Dollar, as BTC/USD broke below a couple of important support levels to trade below the $440 level.

There was an ascending channel pattern formed at the hourly chart (data feed via Bitstamp) of BTC/USD, which was cleared during the downside drift.

Bitcoin price to decline further?

BTC came under a heavy selling pressure during the past couple of sessions vs the US dollar and ETH. BTC/USD traded below an important support area of $440, and looks set for more losses in the near term.

There was an ascending channel pattern formed on the hourly chart (data feed via Bitstamp) of BTC/USD, which was broken during the downside move. Once the price broke the channel support, sellers took control and pushed the price down.

The price traded as low as $435 where the BTC bulls just managed to hold the downside. It is currently making an attempt to correct higher, but finding sellers near the 23.6% Fib retracement level of the last drop from the $458 high to $435 low.

Looking at the current price action, it looks like the price may correct a few more points higher and trade near the 50% Fib retracement level of the last drop from the $458 high to $435 low where it may face hurdles.

One may consider selling near the stated fib level, or even near the 100 hourly simple moving average. I think as long as the price is below the 100 hourly SMA, there lies a possibility of further losses.

On the downside, an initial support is at $435. A break below it could take the price towards the next support area of $430. The hourly MACD is in the bearish slope, pointing towards more losses.

Happy Trading!

Chart Source – TradingView.com and data feed by┬áBitstamp

Aayush Jindal

Aayush has spent over EIGHT years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets.

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1 Response

  1. May 23, 2016

    […] traded as low as $435 vs the US dollar this past week where it found buyers. As mentioned, the price closed below a major support trend line on the 4-hours (data feed via […]

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