Analysis Technical

Bitcoin Price Weekly Analysis – BTC/USD Bounce is Fading

Aayush Jindal | March 25, 2018 | 6:30 am
Bitcoin Price Weekly Analysis BTC USD
Analysis

Bitcoin Price Weekly Analysis – BTC/USD Bounce is Fading

Aayush Jindal | March 25, 2018 | 6:30 am

Key Points

  • Bitcoin price recovered nicely from $7300, but it is struggling to gain traction against the US Dollar.
  • There is a major bearish trend line forming with resistance at $8,750 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair must hold the $8,400-8450 support area to avoid any further declines toward $8,000.

Bitcoin price is struggling to break a key barrier at $8,800 against the US Dollar. BTC/USD is slightly bearish with an important support around the $8,400-8,450 zone.

Bitcoin Price Bearish Resistance

This past week, there was a sharp drop in bitcoin price below the $8,000 level against the US Dollar. The price declined below the $7,500 support and traded as low as $7,296. Later, it staged an upside recovery and moved above the $7,500 level. It broke the 23.6% Fib retracement level of the last drop from the $9,912 high to $7,296 low.

Buyers gained traction and pushed the price above $8,000. Moreover, there was a break above the 50% Fib retracement level of the last drop from the $9,912 high to $7,296 low. However, the upside move was protected by the $9,000 resistance zone and the 100 simple moving average (4-hours). More importantly, a major bearish trend line with resistance at $8,750 on the 4-hours chart of the BTC/USD pair is acting as a key hurdle. At the moment, the price is moving lower and is currently trading below $8,750 and the 100 SMA.

Bitcoin Price Weekly Analysis BTC USD

On the downside, there is a crucial support at $8,400-8,450. BTC must hold the mentioned $8,400 support to avoid a push into the bearish zone. Below $8,400, the price could even break the $8,000 support. On the upside, a successful break and close above $8,800 is needed for buyers to gain control.

Looking at the technical indicators:              

4-hours MACD – The MACD for BTC/USD is about to move back in the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI is currently well below the 50 level.

Major Support Level – $8,400

Major Resistance Level – $8,800

 

Charts courtesy –Trading View

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  • Ömer Faruk ENGİN

    We’re all behind bitcoin. We fully support

    • Muhammad Abdullah

      I hope you die as early as bitcoin will.
      (P.S. Just kidding but I do hope crptocurrence dies soon, so gpu prices won’t start to hike once again.)

      • FAISAL IMAM

        Please look at your name and then look at your words, I hope you reflect.

        • Muhammad Abdullah

          I dont get it, I said I was joking.

          • Winin’

            You have a great name, Honor it. Gpu production will ramp up and supply will catch up with the demand. Its uses have expanded too quickly. Nvidia is a great stock to be in now due to these new techs. The real opportunities lie in Crypto. Get the knowledge NOW.

          • Muhammad Abdullah

            The real problem is production can never be equal to buying rate. A single person buys atleast 10 graphics cards at a time. Even if Nvidia releases their mining cards this GTC, If cryptocurrence goes up in price again, people will again start to buy whatever they can. Just look at 1050, peope even bought that for mining. New 7nm or 10 nm architectures are on the way (hopefully they will be released 2H of this year) So Its hard to keep stuff in stock.

          • FAISAL IMAM

            I understand you meant it in jest, however, it is the first line one reads and the damage is done then. It’s like you slap someone and then follow up with ‘just kidding!’. Sure this is not a physical event here but sometimes the emotional hurt can be more damaging than the physical. I hope you get the point and thank you for responding reasonably instead of lashing out 🙂

          • Muhammad Abdullah

            Yeah, I get it. Actually I’m a very light minded person, I don’t acually mind a good joke even if it’s on me. Anyhow I do get your point.

  • Want to here a joke?
    Selling Bitcoin for U.S dollars. Here’s a little warning – When it’s time, you won’t have a chance. Don’t trade if you can’t afford losing. Invest instead.
    The only thing you should sell is the US Dollar. Cheers!

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