Bitcoin Price Analysis: BTC/USD Downtrend Intact
Bitcoin price continued its down move against the US Dollar, as BTC/USD failed to recover the ground in the short term.
There is a solid resistance forming on the upside in the form of a bearish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD, acting as a sell zone.
Bitcoin Price Sell
BTC continued to move down against the US Dollar, and traded below yesterday’s low to create a new low below $640. There was a nice downside move, taking the price down by around 5% to post a new low of $625.
The price failed to recover, and currently following a bearish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD. The highlighted trend line and resistance area are acting as a barrier and pushing the price down.
As long as the price is below it, there is a chance of more losses in the near term. Moreover, the price is well below the 100 hourly simple moving average, pointing towards bearish signs.
On the upside, the trend line resistance along with the 38.2% Fib retracement level of the last drop from the $764 high to $625 low may continue to act as a hurdle for gains.
Only a break above the trend line resistance could take the price towards the next resistance of the 50% Fib retracement level of the last drop from the $764 high to $625 low where sellers might reappear.
The hourly RSI is below the 50 level, which means the price is under a lot of pressure. So, I think selling close to the trend line may be considered as long as BTC/USD is below it.
On the downside, a retest of $625 is possible in the short term.
Chart Source – TradingView.com and data feed by Bitstamp