Key Points
- Bitcoin price struggled a lot this past week and failed time and again to close above a major resistance near $420.
- There is a bearish trend line formed on the 4-hours chart (data feed from Bitstamp), which prevented the upside move and stalled gains.
- The 100 simple moving average on the 4-hours chart is acting as a catalyst for the downside move and helping bears to gain strength.
Bitcoin price after failing to move higher moved down. Can it settle below $400 and head down for more losses in the near term?
Bitcoin Price- More Losses Ahead?
Bitcoin price struggled a lot this past week and failed to move higher. There is a major resistance area formed near $420-425 levels, which is acting as a monster hurdle for more gains. There is a bearish trend line formed on the 4-hours chart (data feed from Bitstamp), which is aligned around the stated resistance area to stall an upside move. The price moved below the 23.6% Fib retracement level of the last leg from the $382 low to $421 high, suggesting the bulls are moving away.
Moreover, the 100 simple moving average on the 4-hours chart is also above the current price is near the highlighted trend line and resistance area. Overall, it looks like there is a major barrier formed near $420-425 and it won’t be easy for the bulls to take control and break the highlighted resistance area.
There is a chance that the price moves down from the current levels and even test the 50% Fib retracement level of the last leg from the $382 low to $421 high at $400. A break below it may call for more losses moving ahead.
Looking at the technical indicators:
4-hours MACD – The MACD is in the bearish slope, and suggesting a downside move.
4-hours RSI (Relative Strength Index) – The RSI is also below the 50 level, which is a bearish sign.
Intraday Support Level – $400
Intraday Resistance Level – $420
Charts from Bitstamp; hosted by Trading View
