Key Points
- Bitcoin price struggle to retain gains continue, as the price traded a few points lower during the past sessions.
- There is a contracting triangle pattern formed on the hourly chart (data feed from Bitstamp), which may set the next price for the next move.
- The price is below the 100 hourly simple moving average, which may encourage bears to take the price down.
Bitcoin price after trading a few points above $420 failed, and started to move down once again to form a breakout pattern.
Bitcoin Price – Break Near?
Bitcoin price recently traded as high as $422 where it found sellers and started to move down. In short, the price failed to retain strength and weakened. Currently, the price is back below the $418 area, and formed a contracting triangle pattern on the hourly chart (data feed from Bitstamp). The highlighted breakout pattern may play a crucial role for the bulls in the near term.
The price is below the 100 hourly simple moving average, which is a negative sign, and suggesting that the bulls are struggling to hold the ground. The recent correction in Bitcoin price found sellers near the 50% Fib retracement level of the last drop from the $422 high to $406 low.
So, there is a chance that the price may break down and trade near the $410 support area. On the upside, a break above the 100 hourly simple moving average is needed for a move towards the 76.4% Fib retracement level of the last drop from the $422 high to $406 low.
Looking at the technical indicators:
Hourly MACD – The hourly MACD may change the slope to the bearish area, calling for a downside break.
RSI (Relative Strength Index) – The hourly RSI is also below the 50 level, which is a bearish sign.
Intraday Support Level – $410
Intraday Resistance Level – $415
Charts from Bitstamp; hosted by Trading View
