Key Points



  • Bitcoin price failed to gain momentum above $3,900 and declined recently against the US Dollar.

  • There is a major contracting triangle formed with support at $3,765 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).

  • The pair is approaching the next significant break either above $3,850 or below $3,750.


Bitcoin price is trading near important support levels against the US Dollar. BTC/USD may soon make the next move either above $4,000 or below $3,500.


Bitcoin Price Analysis


This past week, bitcoin price moved higher above the $3,800 resistance against the US Dollar. However, the BTC/USD pair struggled a lot to clear the $3,900 resistance level. To start with, a swing low was formed near $3,720 and later the price started an upward move. It broke the $3,800 resistance and the 100 simple moving average (4-hours). The price even traded above the 50% Fib retracement level of the last decline from the $3,920 high to $3,722 low.


However, the price faced a strong resistance near the $3,850 and $3,870 levels. Besides, the 76.4% Fib retracement level of the last decline from the $3,920 high to $3,722 low also prevented gains. Buyers failed to push the price above $3,900 and later the price declined. It traded below $3,800 and the 100 SMA. Having said that, the price is now approaching the key support area near $3,765. More importantly, there is a major contracting triangle formed with support at $3,765 on the 4-hours chart of the BTC/USD pair.


Bitcoin Price Analysis BTC Chart


Looking at the chart, BTC price seems to approaching the next significant break either above $3,850 or below $3,765. An upside break above $3,850 may push the price towards $4,000 and $4,200. On the other hand, a break below $3,765 could spark bearish moves towards $3,500 or $3,300.


Looking at the technical indicators:


4-hours MACD – The MACD for BTC/USD is placed in the bearish zone.


4-hours RSI (Relative Strength Index) – The RSI is currently well below the 50 level.


Major Support Level – $3,765


Major Resistance Level – $3,850


The post Bitcoin Price Weekly Analysis: BTC Approaching Significant Break appeared first on NewsBTC.




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