Key Points
Bitcoin price continued to suffer, and there was a sharp downside move this past week.
There are a couple of bearish trend lines formed on the hourly chart (data feed from Bitstamp), which are acting as a catalyst for the downside move.
The price is hovering near $400, which must hold if the bulls have to prevent any additional weakness.
Bitcoin price was sold aggressively this past week. More losses are possible, but the $400 support area holds the key. Bitcoin Price – Sell Rallies?
Bitcoin price traded down, and as highlighted in this past week’s analysis, the resistance area of $450 played well to push the price down. There was a sharp downside reaction, and the price moved closer to the $400 level. A new monthly low of $402 was formed where the bulls are putting up a fight to prevent any additional weakness.
There are a couple of bearish trend lines formed on the hourly chart (data feed from Bitstamp), which may play a crucial role if the price bounces from the current levels . The price is already correcting higher and broke the 23.6% Fib retracement level of the last drop from the $425 high to $402 low. However, the most important resistance area seems to be around the $415-20 area, as it acted as a support earlier and may act as a hurdle for the bulls moving ahead. The 61.8% Fib retracement level of the last drop from the $425 high to $402 low is also around $415 level. A break above it might call for a test of the highlighted trend lines and resistance area . The price is also well below the 100 simple moving average (H4 chart), calling for more losses.
Looking at the technical indicators: 4-hours MACD – The […]
