Bitcoin Price Analysis: BTC/USD Facing Sellers
Bitcoin price continued to decline against the US dollar, as the BTC/USD pair registered a new low of $645. Can BTC recover moving ahead?
Yesterday’s highlighted bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD was broken during the recent downside move, which is a bearish sign.
Bitcoin Price Resistance
The BTC failed to recover against the US Dollar yesterday and continued its decline. There was a downside move in Bitcoin price taking it below the $650 level.
The most important point is the fact that the price closed below the 100 hourly simple moving average, which may now act as a resistance if the price recover from the current levels. Moreover, yesterday’s highlighted bullish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD was also broken.
All these signs suggest that the price is under a bearish pressure, and if it corrects higher, then it may face sellers on the upside.
There is a new bearish trend line formed on the same chart, which is positioned with the 50% Fib retracement level of the last drop from the $665 low to $645 low. So, we can say that there is a major resistance forming near $655, where sellers may appear and try to defend an upside move in BTC/USD.
Only a break and close above it could take the price towards the 76.4% Fib retracement level of the last drop from the $665 low to $645 low.
In my view, the stated resistance level can be seen as a sell zone in the short term, as there is a chance of a move towards the $640 level once again. The RSI has moved below the 50 level, which is a bearish sign and calling for further weakness in the short term.
Chart Source – TradingView.com and data feed by Bitstamp