Bitcoin Price Analysis: BTC/USD Waiting For Catalyst

Bitcoin Price Analysis: BTC/USD Waiting For Catalyst

Bitcoin price mostly traded in a tiny range against the US dollar, and it looks like the BTC/USD pair is waiting for a catalyst for a downside move.

Yesterday’s highlighted bearish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD is still in play and acting as a hurdle for an upside move.

Bitcoin Price Hurdle

The BTC to USD struggle to move higher continues, and as a result, there can be a downside move in the short term. I highlighted a bearish trend line on the hourly chart (data feed via Bitstamp) of BTC/USD yesterday.

The same trend is still in play, and acting as a major resistance area. The BTC bulls failed on many occasions to break the same, which may finally give an upper hand to the Bitcoin sellers. The pair has already breached the 50% Fib retracement level of the last wave from the $628 low to $642 high, which is a bearish sign.

On the upside, the pair is struggling to clear the 100 hourly simple moving average, which is just below the trend line resistance. So, there are not one, but two important hurdles on the upside. On the downside, there is a chance of a move towards the 1.236 extension of the last wave from the $628 low to $642 high.

We need to keep a close eye on the 100 hourly simple moving average and the highlighted bearish trend line. As long as the price is below it, there are chances of more declines in the near term.

Sellers may also consider selling near it with a stop above the last swing high of $642. The hourly RSI is below the 50 level, which is a signal that the pair is under a bearish pressure.

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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