Bitcoin Price Weekly Analysis: BTC/USD Testing Crucial Resistance

in #bitcoin7 years ago

Key Points


Bitcoin price stayed above the $8,000 support level and recovered against the US Dollar.
There is a monster bearish trend line forming with resistance at $8,300 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
The pair has to move above the trend line and settle above $8,300-8,400 for more gains in the near term.
Bitcoin price is currently testing a major resistance near $8,400 against the US Dollar. BTC/USD could accelerate higher once there is a proper close above $8,400.

Bitcoin Price Upside Barrier


This past week, there were further downsides from well above $8,500 in bitcoin price against the US Dollar. The price moved down and broke the $8,200 support level. There was even a spike below the $8,000 pivot level before a low was formed at $7,940. Later, the price started an upside correction and succeeded in moving above the $8,000 pivot level.

There was also break above the 23.6% Fib retracement level of the last drop from the $8,884 high to $7,940 low. However, there is a crucial barrier on the upside near $8,300-8,400, which is preventing further gains. More importantly, there is a monster bearish trend line forming with resistance at $8,300 on the 4-hours chart of the BTC/USD pair. Furthermore, the 50% Fib retracement level of the last drop from the $8,884 high to $7,940 low is also close to the $8,400 level. Therefore, a break and close above the $8,400 resistance is needed for more gains in BTC. The next resistance above $8,400 sits near the $8,800 pivot level.

Bitcoin Price Weekly Analysis BTC USD

Looking at the chart, the price seems to be approaching a key break above $8,400. If buyers fail to push the price above the mentioned resistance, there could be a downside reaction back towards $8,000.

Looking at the technical indicators:

4-hours MACD – The MACD for BTC/USD is currently stable in the bullish zone.

4-hours RSI (Relative Strength Index) – The RSI is currently just below the 50 level.

Major Support Level – $8,000

Major Resistance Level – $8,400

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