Bitcoin Price Analysis: BTC/USD Just Broke Support

Bitcoin Price Analysis BTC/USD

Bitcoin price after trading towards the $1066 level against the US Dollar found resistance, and now BTC/USD is preparing for a downside move.

During the recent downside move, there was a break below an ascending channel support at $1024 on the hourly chart of BTC/USD (data feed via Poloniex).

Bitcoin Price Decline

There was a good recovery from the $890 low in BTC to USD, as it moved above the $1000 level. The price traded as high as $1066 where it found resistance and started facing offers.

As a result, there was a downside move. The price moved down below $1040 to initiate a downside move. Later, the downside was extended, as the price was able to break the 23.6% Fib retracement level of the last wave from the $890 low to $1066 high.

Finally, there was an increase in selling pressure below $1030. It ignited a break below an ascending channel support at $1024 on the hourly chart of BTC/USD (data feed via Poloniex). As a result, the pair is now under $1025 and struggling to gain bids.

On the downside, the next major support is at $1000. The same level also coincides with the 38.2% Fib retracement level of the last wave from the $890 low to $1066 high. So, there is a chance of buyers appearing near $998. However, I think the most important support is at $990, as the 100 hourly simple moving average is near it.

Moreover, the technical level is at $980, representing the 50% Fib retracement level of the last wave from the $890 low to $1066 high. So, the price is likely to continue lower before it finds support at $988 or $980.

The hourly RSI for BTC/USD (data feed via Poloniex) is well below the 50 level, and heading lower.

Happy Trading!

Chart Source – TradingView.com and data feed by Poloniex

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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