Bitcoin Price Weekly Analysis – BTC/USD Remains Sell on Rallies

 

Key Points

• Bitcoin price declined below $7,260 and moved into a bearish zone against the US Dollar.

• There is a major bearish trend line formed with resistance at $7,320 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).

• The pair must clear the $7,260 and $7,320 resistances to move back in a positive zone.

Bitcoin price tuned bearish with a close below $7,260 against the US Dollar. BTC/USD’s upsides remain capped near the $7,260 and $7,320 levels in the near term.

 

Bitcoin Price Upside Hurdles

This past week, there was a sharp downside move from well above $7,600 in bitcoin price against the US Dollar. The BTC/USD pair declined and broke the $7,500 and $7,260 support levels to move into a bearish zone. It even traded below the $7,000 level and is currently well below the 100 simple moving average (4-hours). A new monthly low was formed at $6,881 and the price is currently consolidating.

 

An initial resistance on the upside is near the 23.6% Fib retracement level of the last dip from the $8,297 high to $6,881 low. More importantly, there is a major bearish trend line formed with resistance at $7,320 on the 4-hours chart of the BTC/USD pair. Below the trend line resistance, the previous support at $7,260 is a crucial resistance. Therefore, the $7,260 and $7,320 resistances are major barriers for more gains in BTC in the near term. Should there be a break above $7,320, the price could recover. The next resistance awaits near $7,600 and the 50% Fib retracement level of the last dip from the $8,297 high to $6,881 low.

Looking at the chart, BTC price is clearly trading in a bearish zone below $7,260. If it fails to recover and slides below $6,880, the next stop for sellers could be $6,500-6,600.

 

Looking at the technical indicators:

 

4-hours MACD – The MACD for BTC/USD is mostly placed in the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI is currently well below the 30 level.

Major Support Level – $6,880

Major Resistance Level – $7,320

 

AAYUSH JINDAL | AUGUST 5, 2018 | 6:30 AM

David