Bitcoin Price Weekly Analysis – Can BTC/USD Break Higher?

Key Points

  • Bitcoin price after moving down towards the $600 level against the US dollar found support and started recovering.
  • There is a bearish trend line formed on the on the 4-hours chart (data feed from Bitstamp) of BTC/USD, which is currently acting as a resistance area.
  • Only a break and close above the 100 simple moving average (H4 chart) could trigger more gains in the near term.

Bitcoin price is currently struggling to break a major resistance area against the US Dollar, which might ignite the next move in BTC/USD.

Bitcoin Price Next Move

Bitcoin price mostly traded with a bearish tone against the US Dollar this past week, and every attempt to correct higher was seen as a sell opportunity. The BTC/USD pair even traded as low as $605 before starting a correction. The price is currently trading near a major resistance area, which is in the form of a bearish trend line on the on the 4-hours chart (data feed from Bitstamp) of BTC/USD.

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The most important part is the fact that the 100 simple moving average (H4 chart) is also positioned around the trend line resistance. Moreover, the 50% Fib retracement level of the last drop from the $705 high to $605 low is also around the same trend line resistance area. All in all, there is a critical resistance zone formed near $660.

Bitcoin Price Weekly Analysis

Only if the BTC bulls manage to break the stated level, there is a chance of more gains in the near term. Otherwise, the BTC/USD pair may move down once again. I think the chances of a move down in the short term is more compared with a move higher.

Looking at the technical indicators:

4-hours MACD – The MACD is about to move into the bearish slope, which is a not a good sign for the bulls.

4-hours RSI (Relative Strength Index) – The RSI is just around the 50 level, calling for a break.

Major Support Level – $630

Major Resistance Level – $660

Charts from Bitstamp; hosted by Trading View

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