Key Highlights
- Bitcoin price fell sharply this past week as sellers managed to gain strength.
- 00 remains a pivot area in the short term, which must hold it the price has to move higher.
Bitcoin price struggled this past week, as there was a sharp downside reaction taking prices towards an important support area of 220.00. Buyers managed to protect the mentioned level and contained losses. The price is now consolidating in a range and looks like setting up for the next move. There is also a triangle pattern formed on the 4-hours chart of Bitcoin, which might act as a catalyst for the next leg in the near term. Currently, the price is trading around the triangle resistance trend line, which is also aligned with the 38.2% Fib retracement level of the last drop from 236.00 to 219.11. Moreover, the Upper Bollinger Band is also positioned around the mentioned Fib level, which sets up 225.00 as a major hurdle for buyers moving ahead. We need to see how long the price can stay below 225.00.
220.00 As a Support
The price this past week stalled around 220.00, which means that the weekly pivot is set and a break below the same might ignite more losses in the near future. On the downside, the Lower Bollinger Band can be seen as a support, which is also colliding with triangle support.
A break below the triangle support may perhaps take the price towards the weekly pivot, which holds the key moving ahead.
Intraday Support Level – 220.00
Intraday Resistance Level – 225.00
There are a couple of signs, which point that the price is at a critical juncture. The hourly RSI is just below the 50 level, which if breached towards the upside might help buyers to take the price higher.
Charts courtesy of Trading View