Bitcoin Price Weekly Analysis – BTC/USD Resume Its Downtrend

Key Points

  • Bitcoin price failed to gain traction, and moved below the $1000 level against the US Dollar.
  • There are two bearish trend lines with resistance near $1040-1060 formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD.
  • The price might correct higher in the near term, but broadly remains under a bearish pressure.

Bitcoin price made a nice downside move recently below $950 against the US Dollar, and now BTC/USD could extend declines in the near term.

Bitcoin Price Resistance and Barriers

This past week, I mentioned that BTC price might soon escalate declines against the US Dollar. The price did move down, and broke a couple of supports like $1020 and $1000. The price traded as low as $888 from where there was a minor correction initiated. The price declined in a proper downtrend with 3-waves from $1140. First, there was a decline to $950, and then a correction towards $1120. Now, the price declined in the third wave below the $940 level towards $888.

At the moment, the price is correcting higher, and already moved above 23.6% Fib retracement level of the last decline from the $1119 high to $888 low. However, there are many resistances waiting on the upside near $1004 and $1040. First, the 50% Fib retracement level of the last decline from the $1119 high to $888 low is at $1004. Then, there are two bearish trend lines near $1040-1060 on the 4-hours chart (data feed from SimpleFX) of BTC/USD. Also, the 100 simple moving average (4H) is around the same trend line resistance near $1040.

Bitcoin Price Weekly Analysis BTC USD

So, we can say that there is a major resistance formed near $1040-50 where one might consider selling if the price moves higher.

Looking at the technical indicators:

4-hours MACD – The MACD is now well placed into the bearish slope.

4-hours RSI (Relative Strength Index) – The RSI is correcting higher, but remains below the 50 level.

Major Support Level – $900

Major Resistance Level – $1050

Charts courtesy – SimpleFX

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