Bitcoin Price Weekly Analysis: BTC/USD Remains Sell on Rallies
- Bitcoin price declined below $7,260 and moved into a bearish zone against the US Dollar.
- There is a major bearish trend line formed with resistance at $7,320 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair must clear the $7,260 and $7,320 resistances to move back in a positive zone.
Bitcoin price tuned bearish with a close below $7,260 against the US Dollar. BTC/USD’s upsides remain capped near the $7,260 and $7,320 levels in the near term.
Bitcoin Price Upside Hurdles
This past week, there was a sharp downside move from well above $7,600 in bitcoin price against the US Dollar. The BTC/USD pair declined and broke the $7,500 and $7,260 support levels to move into a bearish zone. It even traded below the $7,000 level and is currently well below the 100 simple moving average (4-hours). A new monthly low was formed at $6,881 and the price is currently consolidating.
An initial resistance on the upside is near the 23.6% Fib retracement level of the last dip from the $8,297 high to $6,881 low. More importantly, there is a major bearish trend line formed with resistance at $7,320 on the 4-hours chart of the BTC/USD pair. Below the trend line resistance, the previous support at $7,260 is a crucial resistance. Therefore, the $7,260 and $7,320 resistances are major barriers for more gains in BTC in the near term. Should there be a break above $7,320, the price could recover. The next resistance awaits near $7,600 and the 50% Fib retracement level of the last dip from the $8,297 high to $6,881 low.
Looking at the chart, BTC price is clearly trading in a bearish zone below $7,260. If it fails to recover and slides below $6,880, the next stop for sellers could be $6,500-6,600.
Looking at the technical indicators:
4-hours MACD – The MACD for BTC/USD is mostly placed in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI is currently well below the 30 level.
Major Support Level – $6,880
Major Resistance Level – $7,320