Bitcoin Price Weekly Analysis: BTC/USD Decline Could Extend to $5,950

Key Points

  • Bitcoin price is bleeding and it could extend its slide below the $6,100 level against the US Dollar.
  • There is a connecting bearish trend line in place with resistance at $6,300 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair is clearly under pressure and it may perhaps slide to $6,000 and $5,950 in the near term.

Bitcoin price recently broke the $6,214 swing low against the US Dollar. BTC/USD is likely to extend declines and it could spike below $6,000 if sellers remain in action.

Bitcoin Price Trend

This past week, bitcoin price started a major downside move from well above the $7,200 level against the US Dollar. The BTC/USD pair broke many supports on the way down like $7,200, $7,000, $6,750, $6,600 and $6,400. There was also a break below a major bullish trend line with support at $7,200 on the 4-hours chart. The decline was such that the price even broke the $6,214 low and settled below the 100 simple moving average (4-hours).

Recently, the price broke a bearish flag with support at $6,400 to extend slides. It tested the $6,100 support and it is currently consolidating above the $6,150 level. It seems like it could correct a few points, but the $6,300 level is likely to act as a strong resistance. There is also a connecting bearish trend line in place with resistance at $6,300 on the 4-hours chart of the BTC/USD pair. Above the trend line, the previous support near $6,500 is the next major resistance. On the downside, the price could test the 1.236 Fib extension level of the last major wave from the $6,214 low to $7,406 high.

Bitcoin Price Weekly Analysis BTC USD

Looking at the chart, BTC price is clearly in a downtrend, but the $6,000 and $5,950 support levels could provide a strong base for a recovery.

Looking at the technical indicators:

4-hours MACD – The MACD for BTC/USD is slowly moving back in the bullish zone.

4-hours RSI (Relative Strength Index) – The RSI is still well below the 30 level.

Major Support Level – $6,000

Major Resistance Level – $6,500

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Source: Newsbtc