Bitcoin Price Analysis: BTC/USD To Weaken Going Forward?

Bitcoin Price Analysis

Bitcoin price continued to trade in a range against the US Dollar, but it looks like the BTC/USD pair may decline in the near term.

Yesterday’s highlighted contracting triangle pattern formed on the hourly chart (data feed via Bitstamp) of BTC/USD failed and was a false pattern formation. Now, there is a channel pattern forming on the same chart, which may break to ignite a downside move.

Bitcoin Price Break

The BTC to USD after a downside move started correcting lower. During the upside move, the price broke the 23.6% Fib retracement level of the last drop from the $626 high to $594 low. However, the upside was limited, as there were sellers present at $610 defending the upside move.

The price is currently trading in a range and forming an ascending channel pattern on the hourly chart (data feed via Bitstamp) of BTC/USD. It may act as a major reason for the next move in the near term.

On the upside, the channel resistance is acting as a major barrier for the buyers. It is also positioned with the 38.2% Fib retracement level of the last drop from the $626 high to $594 low. So, it holds a lot of importance and it won’t be easy for the traders to break it. On the upside, the next resistance is around the 100 hourly simple moving average. So, there are a lot of barriers for the BTC bulls on the upside.

The chances of a break lower are more, and in that case the pair may head towards the $600 level. Selling with a break below the channel support may be considered moving ahead. The hourly RSI is just around the 50 level, and waiting for sellers to step in.

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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