- Bitcoin price traded positively this past week against the US Dollar to trade near $780.
- At the moment, the BTC/USD pair is attempting to break a bullish trend line formed on the 4-hours chart (data feed from SimpleFX).
- If there is a break and close in BTC/USD, there may be an increase in the downside pressure.
Bitcoin price traded positively this past week versus the US dollar, and currently the BTC/USD pair is eyeing a major downside move.
Bitcoin Price Trend Line Support
There was a nice upside move in BTC price this past week, as it moved towards the $780 level against the US Dollar. However, the BTC buyers were not able to retain the bullish bias, and as a result, there was a downside move. The price moved below the 23.6% Fib retracement level of the last wave from the $684 low to $785 high to initiate a downside move.
The most important point is the fact that the price moved below a bullish trend line formed on the 4-hours chart (data feed from SimpleFX of BTC/USD. At the moment, the price is trading near another bullish trend line. It holds a lot of value in the short term, as it is positioned with the 50% Fib retracement level of the last wave from the $684 low to $785 high. If there is a break and close below the trend line support area, it may increase the downside pressure.
The last 2-3 candles are negative, and pointing that the sellers attempting to break the trend line support. So, the chances of a downside move are more. On the other hand, if there is a bounce, then the pair may challenge the last swing high once more. So, one may consider trading with a break or a rejection.
Looking at the technical indicators:
4-hours MACD – The MACD is currently in the bearish zone, and not showing further bearish signs.
4-hours RSI (Relative Strength Index) – The RSI has moved below the 50 level, which is a bearish sign.
Major Support Level – $730
Major Resistance Level – $750
Charts courtesy – SimpleFX
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.