Bitcoin Price Analysis: BTC/USD Poised For Losses
Bitcoin price finally broke the consolidation pattern against the US Dollar, as the BTC/USD pair traded below a major support area to ignite a downside move.
Yesterday’s highlighted channel pattern on the hourly chart (data feed via Bitstamp) of BTC/USD was broken by the BTC sellers, which pushed the pair down.
Bitcoin Price Downside Move
The BTC to USD failed to move higher, and moved down. There was a lot of resistance on the upside, which pushed the price lower. The price failed miserably near the 50% Fib retracement level of the last drop from the $626 high to $594 low.
As a result, there was a downside move in BTC/USD, taking it below a major support area. The most important break was below yesterday’s highlighted channel pattern on the hourly chart (data feed via Bitstamp) of BTC/USD.
The price is now placed below the channel support area, and also below the 100 hourly simple moving average. This is a strong bearish sign, and may push the pair further down in the near term.
The BTC buyers attempted to push the pair higher once again. However, the broken channel trend line and the 100 hourly simple moving average acted as a resistance. It looks like the buyers are struggling at the moment, which may push the price lower.
At the moment, the $600 handle is acting as a support. If there is a break below it, then there are chances of a move towards the last swing low of $594. Any further losses could put the pair for a test of $590. There are many negative signs on the chart, suggesting more downsides.
The hourly RSI is also below the 50 level, which is calling for bears to take control.
Chart Source – TradingView.com and data feed by Bitstamp