Bitcoin Price Analysis: More Weakness For BTC/USD?
Bitcoin price was crushed during the past 24 hours against the US Dollar, as BTC/USD traded below the $580 support area intraday.
Yesterday’s bearish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD acted as a perfect resistance, and ignited a downside move as forecasted.
Bitcoin Price Downtrend
BTC continued to decline against the US Dollar, as the bears were seen under control. The downside move was very sharp, taking the price below the $600 level. BTC/USD even broke the $580 and $550 support levels to trade as low as $539.
As stated, yesterday’s bearish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD was spot on, as it acted as a hurdle for an upside move. The price found sellers near the trend line resistance and traded lower.
Currently, the price is correcting higher, but finding offers near the 23.6% Fib retracement level of the last drop from the $764 high to $539 low. However, the most important resistance on the upside is near the highlighted trend line. It also coincides with the 38.2% Fib retracement level of the last drop from the $764 high to $539 low, which means
There is a chance of a minor recovery, but we need to keep a close eye on the trend line and resistance area. As long as the price is below it, BTC/USD may trade further down.
The hourly RSI is below the 50 level, which is a bearish sign and calling for more losses in the near term. On the downside, an immediate support is at $550, followed by the recent low of $540.
Only a break above the trend line and resistance area can change the trend line BTC/USD in the short term.
Chart Source – TradingView.com and data feed by Bitstamp