Bitcoin Price Weekly Analysis – BTC/USD Breaks Key Support

Key Points

  • Bitcoin price struggled to move above the $7770 level against the US Dollar and started a downside move.
  • There was a break below a major bullish trend line with support at $6780 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
  • The pair is now well below the $6500 level and remains in the bearish zone.

Bitcoin price struggled and moved below $6500 against the US Dollar. BTC/USD might continue to decline and it could even break $6000.

Bitcoin Price Turned Bearish?

It was yet another bullish week for bitcoin price as it moved above the $7500 level against the US Dollar. The price even managed to move above $7700 and traded to a new all-time high of $7773. Later, it failed to hold gains and started a downside move. It broke the 23.6% Fib retracement level of the last wave from the $5362 low to $7773 high. The downside move was strong as the price broke the $7000 level and the 100 simple moving average (H4).

Sellers even broke a major bullish trend line with support at $6780 on the 4-hours chart of BTC/USD. Moreover, the pair is now well below the 50% Fib retracement level of the last wave from the $5362 low to $7773 high. That’s why, there are chances of it extending declines in the near term. At present, the pair seems to be approaching the $6000 handle, which might act as a support. Once there is a break of the $6000 level, there are chances of more declines toward $5650.

Bitcoin Price Weekly Analysis BTC USD

On the upside, the broken support near $6750 and the 100 simple moving average (H4) are resistance zones. Selling rallies near $6750 can be opted in the short term as long as the price is below $7000.

Looking at the technical indicators:              

4-hours MACD – The MACD is gaining pace in the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI is currently near the oversold levels.

Major Support Level – $6000

Major Resistance Level – $6750

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.

Let’s block ads! (Why?)

Source: Newsbtc