- Bitcoin price moved lower this past week and remained under a lot of bearish pressure versus the US Dollar.
- There was a crucial support trend line formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD, which was broken during the downside move.
- The price traded as low as $560 and it looks like the bulls may continue to struggle.
Bitcoin price weakened a lot during the past week against the USD. Going forward, it may continue to trade lower towards $550.
Bitcoin Price Resistance
Bitcoin price broke down this past week against the US Dollar, and posted losses. During the downside move, the BTC/USD pair broke a couple of important support levels including $575. Moreover, there was a crucial support trend line formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD. The BTC sellers managed to gain momentum and took the pair lower towards the $560 level.
The pair is currently attempting to correct higher. However, it is finding sellers near the broken trend line, which was a support earlier and now acting as a resistance. On the upside, the next hurdle is around the 23.6% Fib retracement level of the last drop from the $592 high to $561 low. The most important resistance is around the $572 level. It is a major pivot zone, and now coinciding with the 38.2% Fib retracement level of the last drop from the $592 high to $561 low.
In my view, the BTC to USD may continue to range trade with a minor bearish bias. There is also a chance of BTC/USD testing the $550 level in the short term.
Looking at the technical indicators:
4-hours MACD – The MACD is strongly placed in the bearish zone, which is not good for buyers.
4-hours RSI (Relative Strength Index) – The RSI is around the oversold levels, which may ignite a minor correction.
Major Support Level – $560
Major Resistance Level – $572
Charts courtesy – SimpleFX
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