Bitcoin Price Analysis: BTC/USD Clears Support, Trades Down
Bitcoin price moved down against the US Dollar recently, as the BTC/USD sellers managed to break an important range support area to ignite a downside move.
I was following a range pattern on the hourly chart (data feed via Bitstamp) of BTC/USD, which was cleared intraday by sellers to call it a bearish pattern.
Bitcoin Price Break
The BTC to USD traded lower after trading in a range for some time. As I mentioned, I followed a pattern on the hourly chart of BTC/USD. The price was also above the 100 hourly simple moving average for some time, but it looks like it was not sufficient for the bulls.
The BTC sellers managed to gain strength, and not only broke the 100 hourly simple moving average, but also cleared the most important range support area. The recent break looks crucial and may ignite further downsides in the near term.
Lastly, the price also closed below the $600 support, which is a bearish sign. The price traded as low as $592 and currently attempting to correct higher. It is finding sellers near the 23.6% Fib retracement level of the last drop from the $608 high to $592 low.
However, the most important resistance on the upside is around the broken range support at $600. The stated level also coincides with the 50% Fib retracement level of the last drop from the $608 high to $592 low.
Moreover, the 100 hourly simple moving average is also positioned above it. So, if the price continues to trade higher from the current levels, it may face sellers on the upside. The hourly RSI is currently around the oversold readings, which means there is a chance of a minor correction, but overall trend looks bearish.
Chart Source – TradingView.com and data feed by Bitstamp