Key Points
- Bitcoin price rose this past week and moved above the $8,000 level against the US Dollar.
- There is a crucial bearish trend line forming with current resistance at $8,200 on the 4-hours chart of the BTC/USD pair (data feed from SimpleFX).
- The pair has to move above the trend line resistance and $8,900 to gain further upside momentum.
Bitcoin price recovered nicely this past week above $7,000 against the US Dollar. However, BTC/USD is currently facing resistance and is correcting lower towards $7,100.
Bitcoin Price Trend and Resistance
There was a slow and steady upside move above $6,500 bitcoin price against the US Dollar. The price managed to move above a couple of important resistance levels such as $7,000 and $8,000. However, the upside move was protected by a major resistance at $8.900. BTC price failed to move above the $8,900 and $9,000 resistance levels, and started a downside move.
More importantly, there is a crucial bearish trend line forming with current resistance at $8,200 on the 4-hours chart of the BTC/USD pair. The trend line resistance acted as a monster barrier near $8,900 and prevented further gains. The pair is currently correcting lower and it has moved below $8,100. Moreover, the price declined below the 23.6% Fib retracement level of the last wave from the $5,816 low to $8,941 high. It seems like the price may correct further lower towards the $7,400 level.
The most important support is near the 50% Fib retracement level of the last wave from the $5,816 low to $8,941 high. On the upside, the price has to move above the trend line and resistance at $8,200 to gain upside momentum. On the downside supports are $7,400, $7,200 and $7,100.
Looking at the technical indicators:
4-hours MACD – The MACD is currently reducing its bullish slope.
4-hours RSI (Relative Strength Index) – The RSI has just moved below the 50 level, which is a negative sign.
Major Support Level – $7,100
Major Resistance Level – $8,200
Charts courtesy – SimpleFX
