Bitcoin Price Weekly Analysis – Can BTC/USD Hold $8,000?
- Bitcoin price declined sharply after it failed to move above the $9,500 resistance against the US Dollar.
- There is a significant bearish trend line forming with resistance at $8,900 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair may rise in the short term, but it is likely to face resistances near $8,900 and $9,000.
Bitcoin price is facing tough barriers around $8,900-$9,000 against the US Dollar. BTC/USD must stay above $8,200 and $8,000 to avoid any further losses in the near term.
Bitcoin Price Support
This past week, there was a sharp bearish reaction from the $9,500 pivot level in bitcoin price against the US Dollar. The price declined sharply and moved below the $9,000 and $8,500 support levels. The decline was such that the price traded towards the $8,200 level. It also broke a connecting bullish trend line at $9,000. A low was formed at $8,226 before buyers appeared. Later, the price started consolidating losses above $8,200 and is currently stable.
It tested the 23.6% Fib retracement level of the last decline from the $9,479 high to $8,226 low. It seems like the price is finding it hard to move above the $8,500 level, which is also a pivot level. Above the $8,500 level, the 50% Fib retracement level of the last decline from the $9,479 high to $8,226 low is at $8,850. There is also a significant bearish trend line forming with resistance at $8,900 on the 4-hours chart of the BTC/USD pair. Therefore, the price is likely to face sellers near the $8,500 and $8,900 levels. Once there is a proper close above $8,900 and $9,000, there could be more gains towards $9,500.
Looking at the chart, the current price action is slightly bearish below $8,900. On the downside, the $8,200 level is a decent support, followed by $8,000. If bitcoin fails to hold $8,000, it could decline below $7,500.
Looking at the technical indicators:
4-hours MACD – The MACD for BTC/USD is about to move into the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is currently well below the 50 level.
Major Support Level – $8,200
Major Resistance Level – $8,900
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