Bitcoin Price Analysis: BTC/USD Completed A Top?

Bitcoin Price Analysis

Bitcoin price after trading as high as $576 versus the US Dollar found resistance, and it looks like the BTC/USD pair just made a short-term top.

Yesterday’s critical bearish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD played well as a resistance and prevented an upside move.

Bitcoin Price Hurdle

The BTC to USD managed to gain bids yesterday to trade above the $570 level. However, later the sellers appeared and defended the upside move. The bulls struggled to gain pace and as a result, there was a minor downside move.

The most important point is that yesterday’s critical bearish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD acted as a resistance. It prevented an upside move and stopped the price from moving further higher.

Moreover, the 50% Fib retracement level of the last drop from the $583 high to $564 low also acted as a resistance along with the trend line as forecasted yesterday. Lastly, the 100 hourly simple moving average was also around the same trend line to act as a hurdle.

All in all, there was a major barrier for the BTC buyers and pushed the price down. The BTC/USD pair is currently trading near the $568 level, and finding buyers. It looks like the pair may continue to face sellers and could even test the last swing low of $564. The pair is currently under pressure, and if it manages to correct higher, then it may face sellers around the same trend line resistance zone.

On the downside, we can keep an eye on the $565 level as a support. It could serve as a buy zones. The hourly RSI is below the 50 level, signaling more losses in the short term.

Happy Trading!

Chart Source – TradingView.com and data feed by Bitstamp

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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