25-09-2016
01:57 am
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Bitcoin Price Weekly Analysis – Buyers Be Careful




Bitcoin price after failing to move higher moved down. Can it settle below $400 and head down for more losses in the near term? Intraday Support Level can be $400. Intraday Resistance Level may be $420.
newsbtc Bitcoin Price Weekly Analysis Buyers Be Careful
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Key Points

  • Bitcoin price struggled a lot this past week and failed time and again to close above a major resistance near $420.
  • There is a bearish trend line formed on the 4-hours chart (data feed from Bitstamp), which prevented the upside move and stalled gains.
  • The 100 simple moving average on the 4-hours chart is acting as a catalyst for the downside move and helping bears to gain strength.

Bitcoin price after failing to move higher moved down. Can it settle below $400 and head down for more losses in the near term?

Bitcoin Price- More Losses Ahead?

Bitcoin price struggled a lot this past week and failed to move higher. There is a major resistance area formed near $420-425 levels, which is acting as a monster hurdle for more gains. There is a bearish trend line formed on the 4-hours chart (data feed from Bitstamp), which is aligned around the stated resistance area to stall an upside move. The price moved below the 23.6% Fib retracement level of the last leg from the $382 low to $421 high, suggesting the bulls are moving away.

Moreover, the 100 simple moving average on the 4-hours chart is also above the current price is near the highlighted trend line and resistance area. Overall, it looks like there is a major barrier formed near $420-425 and it won’t be easy for the bulls to take control and break the highlighted resistance area.

Bitcoin Price Weekly Analysis

There is a chance that the price moves down from the current levels and even test the 50% Fib retracement level of the last leg from the $382 low to $421 high at $400. A break below it may call for more losses moving ahead.

Looking at the technical indicators:

4-hours MACD – The MACD is in the bearish slope, and suggesting a downside move.

4-hours RSI (Relative Strength Index) – The RSI is also below the 50 level, which is a bearish sign.

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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