- Bitcoin price moved down sharply this past week to trade close to the $700 handle against the US dollar before starting a recovery.
- There is a recovery underway, as there is a flag pattern formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD.
- The price is currently facing a couple of important resistance levels, including $850 and $880.
Bitcoin price after a sharp decline towards $700 against the US dollar started a recovery. But it looks like upsides in BTC/USD are contained.
Bitcoin Price Resistances
There was a nasty decline in Bitcoin price against the US Dollar, as it declined from $1150 to $700, weakening by more than 20%. Later, the price found support near $707 from where a recovery was started. The price is currently above the $800 level, but facing sellers near the 23.6% Fib retracement level of the last decline from the $1302 high to $707 low (data feed from SimpleFX).
There is currently a flag pattern formed on the 4-hours chart of BTC/USD, which is acting as a recovery mode. The price is struggling to break the $845-850 levels, which is also around the flag resistance area. The price is currently trading near the flag support area, which is holding the downside. A break below it could stop the current recovery, and may push the price down.
On the upside, a close above $850 is needed for a move towards the 38.2% Fib retracement level of the last decline from the $1302 high to $707 low. Overall, it looks like the price is struggling, and upsides are contained near $850. If there is no break, the price may move into the bearish zone again.
Looking at the technical indicators:
4-hours MACD – The MACD is attempting to change the slope from bearish to bullish.
4-hours RSI (Relative Strength Index) – The RSI is currently below the 50 level, and attempting a break.
Major Support Level – $800
Major Resistance Level – $845-850
Charts courtesy – SimpleFX