Bitcoin Price Analysis: BTC/USD Trend Line Break
Bitcoin price after a nice upside move against the US Dollar started to move down and broke a major support area on the hourly chart.
Yesterday’s highlighted bullish trend line break on the hourly chart (data feed via Bitstamp) of BTC/USD was breached to open the doors for a downside move.
Bitcoin Price Rise
BTC after trading as high as $660 against the USD found sellers and started to move down. The worst part is that the price is now trading below the 100 hourly simple moving average. So, there chances of more losses in the near term.
During the recent downside move, the price as mentioned also broke a bullish trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD, which means the bulls were outpaced by the sellers in the short term.
Moreover, the recent failure to move higher was due to the 61.8% Fib retracement level of the last drop from the $680 high to $610 low. So, we can say that the price completed a correction phase and now moving down once again.
I think there is a high probability that the price may head towards the last swing low of $608 where there is a chance of the BTC bulls appearing. A break below the stated level could even push the price towards the all-important $600 level.
If the price corrects higher from the current levels, then the broken trend line may now act as a resistance area. Moreover, the 100 hourly SMA is also positioned on the upside to act as a sell area for BTC.
The hourly RSI is around the oversold readings as of writing, which means the price may correct a few points from the current levels before resuming downtrend.
Chart Source – TradingView.com and data feed by Bitstamp