Bitcoin Price Analysis: BTC/USD Positioning For Losses?

Bitcoin Price Analysis

Bitcoin price after moving as high as $580 recently against the US Dollar found sellers and the BTC/USD pair started to move.

There is a new bearish trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD, which is acting as a resistance and pushing the price down.

Bitcoin Price Resistance

Yesterday. I highlighted that how BTC to USD found support and made a double bottom pattern to trade higher. It also broke a couple of resistance levels on the way up for a move a higher.

Later, it found resistance near $580 and started to move down. There is a new bearish trend line formed on the hourly chart (data feed via Bitstamp) of BTC/USD, which is stalling gains.

The recent failure to move higher was also due the highlighted trend line and resistance. Now, the downside move has extended, and the price is below the 100 hourly simple moving average. It is not a good sign and means that the price is struggling to retain the bullish sign.

On the downside, the 50% Fib retracement level of the last wave from the $554 low to $580 high is acting as a support. However, if the BTC bulls continue to struggle, then there is a chance of more losses in the near term.

In that situation, as test of the 76.4% Fib retracement level of the last wave from the $554 low to $580 high is also possible. On the other hand, if the BTC buyers succeed in taking the price above the 100 hourly SMA, then a break above the trend line resistance is also possible.

In my view, the price is ranging in $550-600 and we can make the most out of it in the short term.

Happy Trading!

Chart Source – TradingView.com and data feed by┬áBitstamp

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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