Analysis Technical

Bitcoin Price Watch: BTC/USD Struggling Near $8,500

Aayush Jindal | May 17, 2018 | 8:48 am
technical analysis bitcoin
Analysis

Bitcoin Price Watch: BTC/USD Struggling Near $8,500

Aayush Jindal | May 17, 2018 | 8:48 am

Key Points

  • Bitcoin price found support above $8,000 and recovered nicely against the US Dollar.
  • There is a breakout pattern forming with resistance near $8,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair has to move above the $8,500 resistance the 100 hourly simple moving average to gain momentum.

Bitcoin price is struggling to break the $8,500 resistance against the US Dollar. BTC/USD may trade in a range above $8,200 before the next move.

Bitcoin Price Analysis

After forming a base around the $8,080, bitcoin price started an upside recovery against the US Dollar. The BTC/USD pair managed to move above the $8,200 resistance level to post intraday gains. It also broke the 23.6% Fib retracement level of the decline from the $8,854 high to $8,080 low. There were a few positive signs above the $8,200 level, but the price struggled to break a major barrier at $8,500.

The 100 hourly simple moving average at $8,500 prevented gains. There were two attempts by buyers to break the stated $8,500 resistance, but they failed. Moreover, the 50% Fib retracement level of the decline from the $8,854 high to $8,080 low also acted as a resistance. It seems like there is a breakout pattern forming with resistance near $8,500 on the hourly chart of the BTC/USD pair. The pair is currently declining and testing the triangle support at $8,200. Should it break the triangle support, there could be a downside move towards the $8,080 low.

Bitcoin Price Analysis BTC USD

Looking at the chart, the price is clearly struggling near $8,500. A proper break above this is needed for a push towards the $8,750 level. On the flip side, the $8,080 low is a decent support followed by the $8,000 handle.

Looking at the technical indicators:              

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

Hourly RSI (Relative Strength Index) – The RSI has moved back below the 50 level.

Major Support Level – $8,080

Major Resistance Level – $8,500

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