Bitcoin Price Analysis: BTC/USD Downside Break
Bitcoin price failed to break the $680-85 levels against the US Dollar, as the BTC/USD pair moved down and also broke a short-term support area.
Yesterday’s highlighted descending channel pattern on the hourly chart (data feed via Bitstamp) of BTC/USD was broke to clear the way for more losses in the near term.
Bitcoin Price Decline
Yesterday, I highlighted a couple of important patterns and support levels, including a descending channel pattern on the hourly chart (data feed via Bitstamp) of BTC/USD and the 100 hourly simple moving average.
Both these were broken recently by the BTC sellers, as the price moved below the $670 support area. A support trend line formed on the same chart was also broken along with the 100 hourly SMA.
The price traded as low as $659 after the break where it found bids. However, the recent break was crucial, especially since the price closed below the 100 hourly SMA.
The price may correct higher in the short term, but might resistance near the 23.6% Fib retracement level of the wave from the $684 high to $659 low.
However, the most important resistance is around the broken trend line, coinciding with the 38.2% Fib retracement level of the wave from the $684 high to $659 low at $670.
One may even consider a sell trade near the stated level as long as the price is below the 100 hourly SMA. I think the recent losses in BTC/USD may extend, and the pair could head towards the $650 level if sellers remain in control.
Most indicators turned negative, including the hourly RSI. It has moved below the 50 level, and showing no major signs of a recovery in the short term. The MACD has also turned bearish on the hourly chart.
Chart Source – TradingView.com and data feed by Bitstamp