- Bitcoin price after declining close to the $540 level against the US dollar managed to recover well.
- BTC/USD traded above the $600 level once again, but currently facing a major resistance area near $675.
- There is a bearish trend line formed on the 4-hours chart (data feed from Bitstamp) of BTC/USD, which is acting as a hurdle for more gains.
Bitcoin price is forming a nice bullish pattern, but currently facing as a critical resistance area, which holds the key for BTC/USD in the near term.
Bitcoin Price Resistance
Bitcoin price after a sharp fall from $780 to $540 managed to gain bids, and then started to recover. During the upside move, it broke the 38.2% Fib retracement level of the last drop from the $760 high to $540 low. It means the strength of the recent move was excellent, and may call for more gains in the near term.
However, the price is currently facing a major hurdle on the upside around a bearish trend line formed on the 4-hours chart (data feed from Bitstamp) of BTC/USD. There are two more elements aligned around the trend line resistance. First, the 100 simple moving average on the 4-hours chart, and the second is the 61.8% Fib retracement level of the last drop from the $760 high to $540 low. Both along with the trend line is acting as a major resistance area for BTC.
A break above it could trigger more gains. However, I think there are chances of a move down in BTC as long as it is below the 100 SMA (H4).
Looking at the technical indicators:
4-hours MACD – The MACD is in the bullish slope, but it is showing signs of a move towards the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI just moved below the 50 level, which is a negative sign for buyers.
Major Support Level – $620
Major Resistance Level – $680
Charts from Bitstamp; hosted by Trading View