Bitcoin price is currently struggling to break a major resistance area against the US Dollar, which might ignite the next move in BTC/USD.
Bitcoin Price Next MoveBitcoin price mostly traded with a bearish tone against the US Dollar this past week, and every attempt to correct higher was seen as a sell opportunity. The BTC/USD pair even traded as low as $605 before starting a correction. The price is currently trading near a major resistance area, which is in the form of a bearish trend line on the on the 4-hours chart (data feed from Bitstamp) of BTC/USD.
The most important part is the fact that the 100 simple moving average (H4 chart) is also positioned around the trend line resistance. Moreover, the 50% Fib retracement level of the last drop from the $705 high to $605 low is also around the same trend line resistance area. All in all, there is a critical resistance zone formed near $660.
Only if the BTC bulls manage to break the stated level, there is a chance of more gains in the near term. Otherwise, the BTC/USD pair may move down once again. I think the chances of a move down in the short term is more compared with a move higher.
Looking at the technical indicators:
4-hours MACD – The MACD is about to move into the bearish slope, which is a not a good sign for the bulls.
4-hours RSI (Relative Strength Index) – The RSI is just around the 50 level, calling for a break.
Major Support Level – $630
Major Resistance Level – $660
Charts from Bitstamp; hosted by Trading View
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