Analysis Technical

Bitcoin Price Watch: BTC/USD’s Upside Capped By 100 SMA

Aayush Jindal | May 14, 2018 | 8:48 am
technical analysis bitcoin
Analysis

Bitcoin Price Watch: BTC/USD’s Upside Capped By 100 SMA

Aayush Jindal | May 14, 2018 | 8:48 am

Key Points

  • Bitcoin price corrected higher, but upsides were capped by $8,800 and 100 hourly SMA against the US Dollar.
  • The BTC/USD pair broke an ascending channel with support at $8,450 on the hourly chart (data feed from Kraken).
  • The pair must stay above the $8,300 support level to avoid any further declines in the short term.

Bitcoin price recovered from $8,220 against the US Dollar. However, BTC/USD is finding it difficult to break the $8,800-9,000 resistance zone.

Bitcoin Price Analysis

This past week, we saw a downside reaction from well above $9,000 in bitcoin price against the US Dollar. The price broke many support levels such as $9,000, $8,500 and $8,400 to trade close to $8,200. A low was formed at $8,226 before the price started an upside correction. It moved above the $8,400 resistance and even cleared the 23.6% Fib retracement level of the last decline from the $9,391 high to $9,225 swing low.

However, the upside move was capped by the $8,800 resistance and the 100 hourly simple moving average. It was rejected from the 100 hourly SMA and declined back below $8,600. The BTC/USD pair broke an ascending channel with support at $8,450 on the hourly chart. The recent downside break indicates that the pair was rejected from the $8,800 resistance zone. It is currently trading below the $8,500 support with a bearish angle. However, there is a major support forming near $8,300. As long as the price is above the stated $8,300 support, it is likely to move higher in the near term.

Bitcoin Price Analysis BTC

Looking at the chart, the price seems to be consolidating above $8,300. Once the current consolidation phase is over, BTC price may either move above $8,500 or break $8,200 for more losses.

Looking at the technical indicators:              

Hourly MACD – The MACD for BTC/USD is now back in the bearish zone.

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

Major Support Level – $8,300

Major Resistance Level – $8,600

Tags: , , , , , ,

NewsBTC is a news service that covers bitcoin news, technical analysis & forecasts for bitcoin and other altcoins. Here at NewsBTC, we are dedicated to enlightening people all around the world about bitcoin and other cryptocurrencies. We cover news related to bitcoin exchanges, bitcoin mining and price forecasts for various virtual currencies.

Get the app

Featuring live charts, price analysis, breaking news, currency converter and more. The only bitcoin app you need!