Bitcoin Price Weekly Analysis – BTC/USD Remains at Risk

Key Points

• Bitcoin price recovered recently, but it failed to move above the $16,400 resistance against the US Dollar.
• There is a crucial bearish trend line forming with current resistance at $14,200 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
• The pair recently broke a connecting bullish trend line at $13,500 and made a downside move.

Bitcoin price is currently under pressure below $15,000 against the US Dollar. BTC/USD remains at a risk of more declines in the near term.

Bitcoin Price Decline

After a sharp downside move, bitcoin price recovered nicely above the $15,000 level against the US Dollar. The price even traded above the $16,000 level. However, buyers failed to move above the $16,500 level and the 100 simple moving average (4-hours). A downside move is initiated and the price has moved below the 23.6% Fib retracement level of the last wave from the $10,688 low to $16,384 high.

There is currently a lot of bearish pressure on bitcoin and the price is trading below $13,500. There was also a break below the 50% Fib retracement level of the last wave from the $10,688 low to $16,384 high. During the downside move, the price broke a connecting bullish trend line at $13,500 on the 4-hours chart. It has opened the doors for more declines below $13,000 in the near term.

On the upside, there is a crucial bearish trend line forming with current resistance at $14,200 on the 4-hours chart of BTC/USD. The pair might continue to decline and it could even break the 76.4% Fib retracement level of the last wave from the $10,688 low to $16,384 high. Any recoveries from the current levels toward $14,000 remains a short-term sell opportunity.

Looking at the technical indicators:           

4-hours MACD – The MACD is currently in the bearish slope.

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

Major Support Level – $12,000

Major Resistance Level – $14,000

Charts courtesy – SimpleFX