Bitcoin Price Weekly Analysis

Bitcoin Price Weekly Analysis – BTC/USD At Major Turning Point

Avatar Aayush Jindal 4 years ago

Key Points

  • Bitcoin price after trading close to $425 this past week against the US Dollar found sellers and moved down.
  • BTC/USD tested a bullish trend line on the 4-hours chart (data feed from Bitstamp), which provided support and prevented a break.
  • The price is testing the 100 simple moving average on the same chart, which is acting as a resistance and can be seen as a major hurdle for the bulls.

Bitcoin price traded below 100 SMA (H4 chart) recently, which is acting as a resistance now. A break above it is needed for BTC/USD to gain momentum.

Bitcoin Price – Buy with a break?

Bitcoin price traded a few points higher this past week, but it struggled once again to break the $425-30 resistance area and started to move down. During the downside drift BTC/USD broke the 100 simple moving average (H4 chart), which can be considered as a crucial break. However, the price found support near a bullish trend line on the 4-hours chart (data feed from Bitstamp) of BTC to USD.

There was a sharp reaction noted around the trend line support from where the price bounced back. However, the broken 100 SMA (H4 chart) is currently acting as a resistance for more gains. It can act as a turning point for Bitcoin price. If BTC/USD breaks it and the price settles above 100 SMA, then more upsides are possible. One may consider buying with a break and close above it with a tight stop of around 2 points.

Bitcoin Price Weekly Analysis

Buying dips may also not be a bad idea as long as BTC/USD is above the trend line support with a stop below the same.

Looking at the technical indicators:

4-hours MACD – The MACD is in the bearish zone, which means the bears have an upper hand.

4-hours RSI (Relative Strength Index) – The RSI is below the 50 level, which is a bearish sign as long as the price is below the 100 SMA.

Major Support Level – $412

Major Resistance Level – $425

 

Charts from Bitstamp; hosted by Trading View

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