- 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.
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