Tuesday, January 31, 2023
More

    Bitcoin Price Weekly Analysis – BTC/USD Breaks Key Support

    Latest Posts

    Key Points

    • Bitcoin price struggled to move above the $7770 level against the US Dollar and started a downside move.
    • There was a break below a major bullish trend line with support at $6780 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
    • The pair is now well below the $6500 level and remains in the bearish zone.

    Bitcoin price struggled and moved below $6500 against the US Dollar. BTC/USD might continue to decline and it could even break $6000.

    Bitcoin Price Turned Bearish?

    It was yet another bullish week for bitcoin price as it moved above the $7500 level against the US Dollar. The price even managed to move above $7700 and traded to a new all-time high of $7773. Later, it failed to hold gains and started a downside move. It broke the 23.6% Fib retracement level of the last wave from the $5362 low to $7773 high. The downside move was strong as the price broke the $7000 level and the 100 simple moving average (H4).

    Sellers even broke a major bullish trend line with support at $6780 on the 4-hours chart of BTC/USD. Moreover, the pair is now well below the 50% Fib retracement level of the last wave from the $5362 low to $7773 high. That’s why, there are chances of it extending declines in the near term. At present, the pair seems to be approaching the $6000 handle, which might act as a support. Once there is a break of the $6000 level, there are chances of more declines toward $5650.

    On the upside, the broken support near $6750 and the 100 simple moving average (H4) are resistance zones. Selling rallies near $6750 can be opted in the short term as long as the price is below $7000.

    Looking at the technical indicators:              

    4-hours MACD – The MACD is gaining pace in the bearish zone.

    4-hours RSI (Relative Strength Index) – The RSI is currently near the oversold levels.

    Major Support Level – $6000

    Major Resistance Level – $6750

     

    Charts courtesy – SimpleFX

    Latest Posts

    Don't Miss