Key Points
- Bitcoin price declined and broke a key support level at ,200 against the US Dollar.
- There was a break below a triangle pattern with support at ,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may correct a few points in the short term, but it could face resistance near ,150 and ,250.
Bitcoin price tumbled below key supports against the US Dollar. BTC/USD is currently consolidating near ,000 and it is at risk of more losses.
Bitcoin Price Analysis
There was no upside break above ,500 in bitcoin price against the US Dollar. The BTC/USD pair failed on many occasions to trade above the ,500 resistance area. There was a sharp bearish reaction and the price declined below the ,200 and ,080 support levels. It seems like the price was completely rejected from the 50% Fib retracement level of the leg from the ,850 high to ,080 low.
More importantly, there was a break below a triangle pattern with support at ,250 on the hourly chart of the BTC/USD pair. The pair is now trading well below ,500 and the 100 hourly simple moving average. The decline was such that the price even spiked below ,000 and a low was formed at ,931. At the moment, the price is consolidating losses and moved above the 23.6% Fib retracement level of the drop from the ,486 high to ,931 low. However, the price is struggling to move above a connecting bearish trend line with resistance at ,150.
Looking at the chart, the price may perhaps move above ,150 in the near term, but it could face a strong barrier near ,250. Moreover, the 50% Fib retracement level of the drop from the ,486 high to ,931 low is a key resistance at ,209. On the downside, the price must stay above ,000 to avoid a push towards ,600.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slowly moving back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is moving higher towards the 50 level.
Major Support Level – ,000
Major Resistance Level – ,250
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