Bitcoin Price Weekly Analysis – Buyers Struggling To Hold Support?

Bitcoin Price Weekly Analysis

Key Highlights

  • Bitcoin price failed to gain pace this past week, and it remains at a risk of a major break if sellers gain control.
  • There is a monster trend line and support area on the daily chart with the data feed from HitBTC, which we highlighted this past week as well.
  • On the hourly chart via the data feed from Bitstamp, the price is below the 100 simple moving average calling for more losses.

Bitcoin price is struggling to hold the ground and if buyers fail to prevent a break on the daily chart, then more losses are likely.

Can Sellers Make It?

Bitcoin price was under a lot of bearish pressure throughout this past week, as it traded down. There was an attempt to trade and break the $400 handle, but sellers defended it successfully. The price traded as high as $391 where it stalled and started moving down. Looking at the higher time frame chart, there is a critical bullish trend line formed on the daily chart (data feed from HitBTC). I highlighted the same trend line this past week as well, and was expecting the price to find bids near it. There was an attempt to break the highlighted trend line and support area, but buyers appeared to prevent a break.

Bitcoin Price Weekly Analysis

The price closed the week above the same trend line, but one key point to note is the fact that it is now trading below the 100-day simple moving average (daily chart via the data feed from HitBTC). So, on the upside, we can say that there is a monster resistance forming near the 100-day SMA, which is also coinciding with the 38.2% Fib retracement level of the last drop from the $470 high to $361 low. If buyers manage to clear the 100-day SMA and the stated fib level, then there is a chance of recovery in the short term. The next level of interest in that scenario could be around the 50% Fib retracement level of the last drop from the $470 high to $361 low. On the downside, the bullish trend line must hold, else if sellers manage to clear it, then the price may dive down towards the $320-300 area.

Looking at the shorter time frame chart, then the hourly chart via the data feed from Bitstamp suggests that the price is under a lot of bearish pressure. There is a bearish trend line formed, which may well act as a hurdle for buyers if the price moves higher from the current levels. The price is also below the 100 hourly simple moving average, which is also a concern for buyers.

Bitcoin Price Weekly Analysis

The 100 simple moving average on the hourly chart via the data feed from Bitstamp is also coinciding with the $380 level. The mentioned level acted as a pivot area many times earlier. On the downside, we need to keep an eye on the 76.4% Fib retracement level of the last wave from the $365 low to $391 high.

Looking at the indicators:

Daily MACD – The daily MACD is in the bullish zone that may encourage buyers moving ahead.

RSI (Relative Strength Index) – The daily RSI is below the 50 level, which is a negative sign for the buyers.

Intraday Support Level – $380

Intraday Resistance Level – $406

Charts from HitBTC and Bitstamp; hosted by Trading View

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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