Bitcoin Weekly Forecast: BTC Trend Overwhelmingly Bearish

Aayush Jindal

1 year ago

2 mins read

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After struggling to recover above $7,300, bitcoin price started a fresh decline against the US Dollar.
The price is currently trading in a bearish zone just above the $7,000 support area.
There is a key bearish trend line forming with resistance near $7,260 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
The price is likely to accelerate its decline if there is a downside break below the $7,000 support.

Bitcoin price is back in a downtrend below $7,200 against the US Dollar. BTC could continue to move down below $7,000 and $6,880 in the near term.

Bitcoin Price Weekly Analysis (BTC)

This past week, bitcoin struggled to recover above the $7,280 and $7,300 resistance levels against the US Dollar. Moreover, BTC price remained well below the $7,400 level and the 100 simple moving average (4-hours).

The recent decline was such that the price declined below the $7,100 support area. A new monthly low is formed near $7,008 and the price is currently consolidating losses.

An initial resistance is near the $7,100 level. Additionally, the first hurdle is near the $7,165 level or the 23.6% Fib retracement level of the downward move from the $7,668 high to $7,008 low.

The next major resistance is near the $7,280 level. Besides, there is a key bearish trend line forming with resistance near $7,260 on the 4-hours chart of the BTC/USD pair. Above the trend line, the 100 simple moving average (4-hours) is near the $7,340 area.

More importantly, the 50% Fib retracement level of the downward move from the $7,668 high to $7,008 low is near the $7,338 level. Therefore, the $7,280 and $7,340 levels are important hurdles for a decent recovery in the near term.

A clear break above the $7,340 level is likely to open the doors for more upsides above the $7,400 level. On the downside, an immediate support is near the $7,000 level.

If there is a downside break below the $7,000 support, there is a risk of a sharp decline below the $6,880 support. The next major support is near the $6,600 and $6,500 levels, where buyers are likely to appear.

Looking at the chart, bitcoin price is clearly trading below a couple of important resistances near the $7,280 level. The next move could be either a sharp decline below $7,000 or a decent recovery above the $7,280 resistance area.

Technical indicators

4 hours MACD – The MACD for BTC/USD is slowly gaining bearish momentum.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is still declining and it is approaching the oversold area.

Major Support Level – $7,000

Major Resistance Level – $7,280

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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