Bitcoin Is Still In Larger Downtrend Unless It Clears 100-Day SMA
Bitcoin2020/04/17 05:38 by Aayush Jindal
Bitcoin is currently trading in a broad range above the $6,500 support against the US Dollar. BTC is facing a major resistance near $7,500 and the 100-day simple moving average.
Bitcoin is still in a larger downtrend below the $7,500 resistance against the US Dollar.
The price is currently consolidating above the $6,500 support area.
There is a major bearish trend line forming with resistance near $7,580 on the daily chart of the BTC/USD pair (data feed from Kraken).
The bulls are likely to face a strong resistance near $7,500 and the 100-day simple moving average.
Bitcoin Price is Approaching Major Hurdle
In the past few days, bitcoin mostly traded in a broad range above the $6,400 and $6,500 support levels against the US Dollar. BTC price seems to be well bid above the $6,500 level, but it is facing a lot of hurdles on the upside.
The first key resistance is near the $7,240 level. It represents the 50% Fib retracement level of the crucial drop from the $10,561 high to $3,920 swing low. The bulls already made an attempt to clear the $7,240 resistance, but they failed.
More importantly, there is a major bearish trend line forming with resistance near $7,580 on the daily chart of the BTC/USD pair. Above the trend line, the next key resistance area is visible near the $8,000 level and the 100-day simple moving average.
Bitcoin Price
The 61.8% Fib retracement level of the crucial drop from the $10,561 high to $3,920 swing low is also near the $8,000 resistance area. Therefore, bitcoin seems to be facing two major hurdles near $7,500 and $8,000.
To move into a strong uptrend, the bulls need to gain strength above $7,500, with a follow up move above the $8,000 barrier. If they succeed, the price could surge towards the $9,500 and $10,000 levels in the coming days.
Fresh Decline?
If bitcoin price fails to continue above the $7,500 resistance or the $8,000 barrier, it could start a fresh decline. An initial support on the downside is near the $6,400 level.
If the price fails to stay above the $6,400 support, it may perhaps retest the $6,000 support. Any further losses could start another significant decline towards the $5,000 support area in the near term.
Technical indicators:
Daily MACD – The MACD is struggling to gain momentum in the bullish zone.
Daily RSI (Relative Strength Index) – The RSI for BTC/USD is now just above the 50 level.
Major Support Levels – $6,400 followed by $6,000.
Major Resistance Levels – $7,240, $7,500 and $8,000.
Image from unsplash.
0 Like(s)
You should also read...
Bitcoin24/04/20 05:28 by Aayush Jindal
Bitcoin Rally At Risk of Screeching Halt at $8K as 100-Day SMA Approaches
Bitcoin is up more than 5% and it broke the key $7,500 resistance against the US Dollar. BTC is now approaching a major hurdle near $8,000 and the 100-day simple moving average.
Bitcoin is gaining bu... Read More
Bitcoin22/06/20 05:58 by Aayush Jindal
3 Key Reasons Why Bitcoin Price Could Surge Above $9,500
Bitcoin is trading nicely above the $9,300 and $9,220 support levels against the US Dollar. BTC is likely to continue higher towards $9,500 and $9,800 as long as it is above $9,220.
Bitcoin is formin... Read More
Bitcoin16/10/20 05:58 by Aayush Jindal
TA: Bitcoin is Showing Early Signs of Fresh Increase, But $10.6K Is The Hurdle
Bitcoin price started a fresh increase from the $11,260 low against the US Dollar. BTC must settle above $11,600 to continue higher towards $11,800 and $12,000.
Bitcoin is showing a few positive sign... Read More
Bitcoin22/12/20 04:48 by Aayush Jindal
TA: Bitcoin Corrects, Why 100 SMA Could Trigger Another Leg Lower
Bitcoin price started a downside correction below the $23,000 support against the US Dollar. BTC is likely to decline again as long as it is below $23,500 and the 100 hourly SMA.
Bitcoin started a fr... Read More
Bitcoin18/06/21 05:08 by Aayush Jindal
TA: Bitcoin Trims Gains, What Could Trigger Fresh Drop To $35K
Bitcoin price started a fresh decline after it failed to stay above $40,000 against the US Dollar. BTC is moving lower and it could even decline towards $35,000 in the near term.
Bitcoin started a fr... Read More