04 Feb Bitcoin Price Weekly Analysis – BTC/USD Recovery to Fade Soon?
- Bitcoin price declined sharply this past week and traded towards $7,500 against the US Dollar.
- There was a break below a crucial bullish trend line with support at $10,800 on the 4-hours chart of the BTC/USD pair (data feed from SimpleFX).
- The pair traded as low as $7,599 and it is currently correcting higher toward the $9,500 level.
Bitcoin price is recovering after a major decline below the $8,000 level against the US Dollar. BTC/USD is struggling to move above $9,500 and it may move down once again.
Bitcoin Price Resistance
This past week, we saw a monstrous decline in bitcoin price from well above $11,000 against the US Dollar. The price traded lower and broke the $10,000 and $9,000 support levels. The decline was such that the price even broke the $8,200 and $8,000 support levels. During the downside, there was a break below a crucial bullish trend line with support at $10,800 on the 4-hours chart of the BTC/USD pair. It traded close to the $7,500 level and formed a low at $7,599. Later, an upside correction was initiated and the price move above the $8,000 level.
It also moved above the 23.6% Fib retracement level of the last decline from the $11,820 high to $7,599 low. However, there are many resistances on the upside near the $9,500, $9,650 and $10,000 levels. At the moment, the price is facing sellers near the 38.2% Fib retracement level of the last decline from the $11,820 high to $7,599 low. Above $9,350, there is a horizontal resistance near $9,650. To the topside, there is a bearish trend line with resistance at $10,300.
Therefore, it won’t be easy for the current recovery to continue above the $9,500 and $10,500 levels.
Looking at the technical indicators:
4-hours MACD – The MACD is currently reducing its bearish slope.
4-hours RSI (Relative Strength Index) – The RSI is finding it hard to move back above the 50 level.
Major Support Level – $8,000
Major Resistance Level – $10,500
Charts courtesy – SimpleFX
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