Bitcoin Price Analysis: BTC/USD Can Test $420?
Bitcoin price as mentioned this past week traded down and broke a major support area vs the US dollar. There are a lot of bearish signs at the moment, signaling more losses in the near term.
The most important thing was the fact that the BTC/USD broke a major support trend line on the 4-hours (data feed via Bitstamp), which ignited a solid down wave.
Bitcoin price to move down further?
BTC 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 Bitstamp). Moreover, it also settled below the 100 simple moving average on the same chart.
Currently, the price is attempting a recovery from the lows, but finding sellers near the 23.6% Fib retracement level of the last drop from the $458 high to $435 low.
On the upside, the most important hurdle for the BTC buyers is near the broken trend line and 100 SMA. However, before that the 50% Fib retracement level of the last drop from the $458 high to $435 low may also come into play.
If you are looking to sell, then you can consider it near the $450-452 levels. The stated levels represents a major resistance area, and it won’t be easy for the buyers to break it if the price continues to recover from the current levels.
On the downside, as mentioned this past week as well, an initial support is at $435. If the price closes below the stated level, then a test of $430 is possible. I think, there is even a chance of a test of the $420 level. The hourly RSI is below the 50 level, which is a bearish sign in the short term.
Chart Source – TradingView.com and data feed by Bitstamp