- Bitcoin price looks like setting up for a break down against the US dollar moving ahead.
- Yesterday’s highlighted bullish trend lines on the hourly chart (data feed from Bitstamp), are struggling to hold losses and may be broken.
- BTCUSD closed below the 100 hourly simple moving average, which is a negative sign for the bulls.
Bitcoin price is attempting to move down and clear a major support area. Can sellers succeed in taking the price down?
Bitcoin Price – Selling?
Bitcoin price is moving down, and it looks like the bulls are struggling to keep up the trend up. Let us try to see how the price is shaping up, and whether it can move down or not. Yesterday, I highlighted a couple of bullish trend lines formed on the hourly chart (data feed from Bitstamp), but it looks like the bulls are struggling to hold it. There is an attempt at the moment to take the price down and close below it.
The most important point is that the price is already below the 100 simple moving average (H1, data feed from Bitstamp), which is a strong bearish sign. If the bears gain control, then there is a chance of a move down towards the $410 level. The price is currently trading near the 38.2% Fib retracement level of the last wave from the $406 low to $418 high.
A close below the trend line and support area may call for more losses. The 61.8% Fib retracement level of the last wave from the $406 low to $418 high might also be tested.
Looking at the technical indicators:
Hourly MACD – The hourly MACD is in the bearish zone, calling for more losses.
RSI (Relative Strength Index) – The RSI is around the oversold area, which means the bears are in control.
Intraday Support Level – $410
Intraday Resistance Level – $418
Charts from Bitstamp; hosted by Trading View