Bitcoin Price Analysis: BTC/USD Short-term Downtrend
Bitcoin price started to move down yesterday against the US Dollar, and it looks like the BTC/USD pair has started a downtrend in the short term.
There was a bullish trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD, which was broken during the downside move to open the doors for more losses.
Bitcoin Price Decline
There was a decline in the BTC versus the USD, as the buyers failed once again to break the $600 level. There was a break below the $590 level, which can now push the price further down.
One important point to note is that the price during the downside move broke a bullish trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD. The recent break has cleared the way for more losses in the near term.
Another critical point is that the price broke the 100 hourly simple moving average and settled below it. So, there is a risk of more declines if the BTC bears stay in control.
If the price corrects higher from the current levels, then the 23.6% Fib retracement level of the last decline from the $602 high to $583 low may act as a resistance. Above it lies the 100 hourly simple moving average, which is a major hurdle for the BTC bulls in the short term.
Any further correction may take the price towards the 50% Fib retracement level of the last decline from the $602 high to $583 low. The stated level is also aligned with the broken trend line. So, it may act as a major hurdle for the buyers in the near term.
I think there is a chance of a test of $575 at least before the price can move back higher.
Chart Source – TradingView.com and data feed by Bitstamp