Bitcoin is toiling hard to not break down. The cryptocurrency is under a strong pressure, but the bulls are putting up a remarkable fight to defend a crucial support level, which we will be discussing very soon. But for how long they are able to do so in an adverse environment remains to be seen. Bitcoin is currently trading at $228.90.
Today, we will be discussing the technical considerations of the weekly BTC-USD price chart.
Bitcoin Chart Structure – If we take a look at the weekly chart above for the period spanning year-to-date, we find that the trendline connecting the closing lows is actually providing great support to Bitcoin for the past three weeks. No matter what the daily fluctuations have been, Bitcoin has been flat on a weekly closing basis for two weeks (three if it settles this week at current levels).
Moving Averages – The 9-week SMA of $263.2756 can be seen closing in on the 30-week SMA of $250.3773. If the short-term average closes below the long-term average, expect a serious decline in the market cap.
Moving Average Convergence Divergence – While the price has managed to sustain itself, the Histogram has skid into the negative region following the bearish crossover of MACD and Signal Line.
Momentum – Another indicator with bearish connotations is the Momentum indicator with a value of -19.7200.
Money Flow Index – The MFI does not provide much help with its value of 48.1858.
Relative Strength Index – The RSI is flat as the price for the past three weeks. It is now at 41.5000.
In the light of the technical indications and the flat weekly price action, I would suggest the market participants to use any bounce or rally – yes, I am not ruling that out – to exit Bitcoin.
If Bitcoin closes this week below $220, we will witness an extended decline in Bitcoin.