Bitcoin (BTC) Price Weekly Forecast: Decline Far From Over
- There was a strong drop in bitcoin price below the $10,500 support against the US Dollar.
- The price is currently correcting losses, but it remains below key hurdles near $10,500.
- There is a bearish continuation pattern forming with support near $10,080 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to resume its decline below the $10,000 and $9,800 support levels.
Bitcoin price is trading in a downtrend below $10,500 and $10,800 against the US Dollar. BTC price remains at a risk of more losses below the $9,800 support area.
Bitcoin Price Weekly Analysis (BTC)
In the last weekly forecast, we discussed the chances of a strong decline in bitcoin price to $10,500 against the US Dollar. The BTC/USD pair did decline in the past few days and even broke the $10,500 support level. Moreover, there was a break below $10,000 and a close below the 100 simple moving average (4-hours). The decline was such that the price even traded below $9,800 and a new monthly low was formed near $9,510.
Recently, the price started an upside correction above the $10,000 resistance level. Moreover, there was a break above the 23.6% Fib retracement level of the last major decline from the $12,337 high to $9,510 swing low. However, the previous support near the $10,500 level is acting as a strong resistance. Additionally, there is a bearish continuation pattern forming with support near $10,080 on the 4-hours chart of the BTC/USD pair.
If there is a downside break below the $10,000 support, bitcoin price could resume its decline. An immediate support is near the $9,800 level, below which the price may perhaps revisit the $9,500 support level. Finally, if there are more downsides, the price could test the $9,200 and $9,000 levels.
On the upside, there are many important resistances near $10,500 and $10,800. Moreover, the 50% Fib retracement level of the last major decline from the $12,337 high to $9,510 swing low is near the $10,900 level. There is also a crucial bearish trend line forming with resistance near $10,800s. Therefore, a break above the $10,500 and $10,800 resistance levels won’t be easy in the near term.
Looking at the chart, bitcoin price is clearly trading in a bearish zone below $10,500. Therefore, there is a risk of more downsides below the $10,000 and $9,800 support levels. To start a strong recovery, the price must surpass the $10,500 and $10,800 resistance levels.
4 hours MACD – The MACD for BTC/USD is about to move back into the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently declining towards the 25 level.
Major Support Level – $10,000
Major Resistance Level – $10,500