Bitcoin Price Analysis: BTC/USD Tumbles, Now What To Do?

Bitcoin Price Analysis

Bitcoin price collapsed against the US dollar, as there were reports of a BTC exchange being hacked and BTC’s were stolen. Know More.

There was a nasty decline in the BTC/USD pair, as it collapsed from $600 to $465 before recovering. There is now a new resistance trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD, which may act as a hurdle for more recovery in the short term.

Bitcoin Price Decline

I pointed out yesterday that the BTC is under a lot of pressure against the US Dollar and may decline further. There was a sharp drop in the price, as there were reports of a hack.

A report on Fortune stated that “Hong Kong-based digital currency exchange Bitfinex said late on Tuesday it has suspended trading on its exchange after it discovered a security breach, according to a company statement on its website”.

There was a sharp downside move in the BTC/USD, which not only took it below the $600 level, but also $500. A nee weekly low of $465 was formed. The price after forming a new low started to recover, and has already moved above the 23.6% Fib retracement level of the last drop from the $656 high to $465 low.

There is a chance that the price may continue to move higher, but it may face sellers near a new resistance trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD.

Moreover, the 50% Fib retracement level of the last drop from the $656 high to $465 low may also act as a hurdle for a recovery in the near term.

So, if you are a buyers, then look to take profits around the $560-80 levels in the near term.

Happy Trading!

Chart Source – TradingView.com and data feed by Bitstamp

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2 Responses

  1. August 4, 2016

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  2. August 4, 2016

    […] BTC versus the USD managed to recover during the past couple of sessions, and managed to trade above the $550 level. There was a good buying interest noted for Bitcoin, as […]

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