Bitcoin Price Analysis: BTC/USD Under Immense Pressure
Bitcoin price was under a lot of selling pressure against the US Dollar, as the BTC/USD pair collapsed and traded below the $630 support area.
There was a bullish trend line formed on the 4-hours chart (data feed via Bitstamp) of BTC/USD, which was broken during the downside move.
Bitcoin Price Decline
The BTC faced a lot of heat against the USD during the past few sessions, as it declined heavily to post a close below the $630 support area. During the recent downside move, the price broke a couple of important support levels, and traded as low as $614.
The most important point is that the bears managed to break a bullish trend line formed on the 4-hours chart (data feed via Bitstamp) of BTC/USD. This suggests that the bears have an upper hand and may remain in action for some time.
If the price attempts to correct higher, then the 23.6% Fib retracement level of the last drop from the $665 low to $614 low may act as a resistance. I think any major recovery is very unlikely in the short term, as there lies a chance of a test of the $605-00 support area.
If at all the correction phase extends, then a test of the 38.2% Fib retracement level of the last drop from the $665 low to $614 low is also possible. The most important resistance on the upside would be around the broken trend line or we can say around $645-50.
On the downside, I am looking for a test of the $605 support area. We need to see how the price trades in the short term and whether it can recover or not. The hourly is around the oversold readings, which is a sign that a minor correction is possible.
Chart Source – TradingView.com and data feed by Bitstamp