- Bitcoin price after trading close to the $682-84 levels against the US Dollar found sellers, and moved down.
- There were a couple of bullish trend lines formed on the 4-hours chart (data feed from Bitstamp) of BTC/USD, which were broken during the downside move.
- The price is also below the 100 simple moving average on the 4-hours chart, calling for more losses in the short term.
Bitcoin price failed to trade towards $700 against the US Dollar, and it looks like the price is setting up for a decline moving ahead.
Bitcoin Price Sell?
Bitcoin price this past week traded towards the $685 level against the US Dollar, but failed to retain the bullish bias, and started to trade down. It broke the 23.6% Fib retracement level of the last wave from the $606 low to $682 high, which opened the gates for more declines in the short term.
Furthermore, during the downside move, the BTC/USD pair broke a couple of important support area. First, there were a couple of bullish trend lines formed on the 4-hours chart (data feed from Bitstamp) of BTC/USD. Second, the price closed below the 100 simple moving average on the same chart. So, we can say there are enough signs on the chart suggesting the price is under a bearish pressure.
Currently, the price is finding support near the 50% Fib retracement level of the last wave from the $606 low to $682 high. A break and close below it could ignite a move towards the $630 level. Any further declines may even take the price towards the next major support of $620.
Looking at the technical indicators:
4-hours MACD – The MACD is in the bearish slope, which is a bearish sign for BTC.
4-hours RSI (Relative Strength Index) – The RSI is well below the 50 level, pointing towards the amount of bearish pressure on BTC.
Major Support Level – $630
Major Resistance Level – $660
Charts courtesy – SimpleFX