- Bitcoin price is finding it really hard to head higher so let’s try to analyze what’s holding the bulls back.
- There is a monster bearish trend line formed on the 4-hours chart (data feed from Bitstamp), which is acting as a hurdle for the bulls.
- Moreover, the 100 simple moving average is positioned around the same trend line to increase the resistance importance.
Bitcoin price is under a lot of bearish pressure and looking at the 4-hours chart it is clear that the bulls are struggling.
Bitcoin Price – Trend Line Resistance
Bitcoin price is trying its best to trade higher, but there are many barrier for the bulls on the upside, which is stalling the upside. If we look at the 4-hours chart, then we will know that why the price is finding it hard to move higher. There is a major bearish trend line formed on the 4-hours chart (data feed from Bitstamp), which is acting as a resistance and preventing gains.
The highlighted trend line and resistance area stalled gains on many occasions, and currently acting as a barrier. One more important point to note is the fact that the 100 simple moving average (H4, data feed from Bitstamp) is also around the same trend line and resistance to act as a monster hurdle. Moreover, the 61.8% Fib retracement level of the last drop from the $440 high to $382 low is also positioned around it.
So, in short, there is a crucial resistance near $415-420 that may continue to stop the upside move.
Looking at the technical indicators:
4-hours MACD – The 4-hours MACD is almost flat, signaling the price is in a consolidation phase.
RSI (Relative Strength Index) – The RSI is hovering near the 50 level, calling for a break in the short term.
Intraday Support Level – $400
Intraday Resistance Level – $420
Charts from Bitstamp; hosted by Trading View