- Bitcoin price annoyed many traders during the past few weeks, as there were no real movements in BTC/USD.
- If we look at the weekly chart (data feed from Bitstamp), then we can figure out that there is a significant resistance around $490-$525.
- BTC may struggle to break the stated resistance levels, but if there is a break, then gains are likely in BTCUSD.
Bitcoin price traded in a range this past week. Can buyers succeed in taking BTCUSD higher or sellers might gain strength for a downside move?
Bitcoin Price- $490-525 as Resistance
Bitcoin price managed to stay above a key support area of $400 this past week, but there was a lot of struggle to clear a critical resistance area of $425. BTCUSD was mostly seen trading in a range of $400-425, and both the range support area and range resistance zone played well as buy and sell zone respectively.
Now, if we look at the big picture and try to analyze the weekly chart, then we will know that the price is currently trading below a monster hurdle. There is an important resistance band zone formed near $490-$525, as can be seen on the weekly chart of BTCUSD (data feed from Bitstamp). The stated levels acted as a support and resistance earlier many times. So, it can be considered as a major pivot area.
One positive for the bulls is the fact that the price is above the 100-week simple moving average. There is a possibility that the price may continue to consolidate in a small range for some time before the price either moves above the resistance area or breaks the 100-week SMA for a downside move.
Looking at the technical indicators:
Weekly MACD – The MACD is flat, and there is no signal of any major move.
Weekly RSI (Relative Strength Index) – The RSI is above the 50 level, pointing towards the buyers’ strength.
Weekly Support Level – $400
Weekly Resistance Level – $440
Charts from Bitstamp; hosted by Trading View