Bitcoin Price Analysis: BTC/USD Facing Sellers

Bitcoin Price Analysis

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.

Happy Trading!

Chart Source – TradingView.com and data feed by Bitstamp

Aayush Jindal

Aayush has spent over EIGHT years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets.

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1 Response

  1. July 29, 2016

    […] was a range pattern noted for the BTC versus the US Dollar. The price was seen consolidating in a narrow range with a […]

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