30-07-2016
01:00 pm
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Coince - Bitcoin Investment Solution

Bitcoin Price Weekly Analysis – Sell Until This Change




Bitcoin price climbed higher this past week. However, it failed right around a major resistance area, which is now calling for a decline. Intraday Support Level can be $400. Intraday Resistance Level may be $420.
Bitcoin Price Weekly Analysis
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Key Points

  • Bitcoin price managed to recover some ground this past week, but found resistance near a major level at $420.
  • There is a bearish trend line formed on the 4-hours chart (data feed from Bitstamp), which acted as a barrier for the price.
  • The price also struggled to clear the 100 simple moving average on the 4-hours chart, which is a bearish sign.

Bitcoin price climbed higher this past week. However, it failed right around a major resistance area, which is now calling for a decline.

Bitcoin Price- Sell Near 100 SMA?

Bitcoin price attempted to recover this past week, and it succeeded to a great extent, as it moved above the $400 level. However, the upside was stalled near a major resistance area of $420. There is a bearish trend line formed on the 4-hours chart (data feed from Bitstamp), which prevented the upside move and pushed the price down once again.

The most important point to note is the fact that the $420 level represents a major confluence resistance area. The 100 simple moving average on the 4-hours chart is positioned around it. Moreover, the 61.8% Fib retracement level of the last drop from the $442 high to $382 low is also around the stated level. In short, the $420 level represents a major resistance area and could continue to act as a barrier. So, you may consider selling as long as the price is below it.

Bitcoin Price Weekly Analysis

A break above it could take the price towards the 76.4% Fib retracement level of the last drop from the $442 high to $382 low. On the downside, the most important support is at $400.

Looking at the technical indicators:

4-hours MACD – The MACD is in the bearish slope, and pointing towards more losses.

4-hours RSI (Relative Strength Index) – The RSI is below the 50 level, calling for more losses.

Intraday Support Level – $400

Intraday Resistance Level – $420

 

Charts from Bitstamp; hosted by Trading View

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.

Published by

Aayush Jindal

Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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