Bitcoin price jaw dropped this past week versus the US Dollar, and was under a bearish pressure. Can BTC recover moving ahead?
- Bitcoin price made a couple of strange moves against the US Dollar, and mostly struggled.
- There was a bullish trend line formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD, which was broken during the downside move.
- The pair is currently forming a flag pattern, which may ignite the next move.
Bitcoin Price Break
Bitcoin price this past week traded as high as $629 against the US Dollar, but found sellers. The price dropped sharply after a failure to break the stated level. During the downside move, the BTC/USD pair broke a bullish trend line formed on the 4-hours chart. The highlighted break was crucial, as it ignited more losses in the pair.
The pair traded as low as $568, but then quickly recovered. The price moved above the 50% Fib retracement level of the last drop from the $629 high to $568 low. However, the pair is struggling to close above the $615 level. It is also struggling for a daily close above the 61.8% Fib retracement level of the last drop from the $629 high to $568 low. It means it won’t be easy for the bulls to take the price higher.
There is a major breakout pattern formed on the 4-hours chart as a flag pattern. There are a few positives as well, as the price is above the 200 simple moving average on the H4 chart. However, if sellers succeed in breaking the channel support, then more losses are likely.
Looking at the technical indicators:
4-hours MACD – The MACD is currently in the bearish zone, but may change the slope soon.
4-hours RSI (Relative Strength Index) – The RSI is currently below the 50 level, which is a bearish sign.
Major Support Level – $600
Major Resistance Level – $615
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