Bitcoin (BTC) Price Weekly Forecast: Downtrend Intact Below K
- There was a nasty decline in bitcoin below the $ 9,000 support against the US Dollar.
- The price even declined below the $ 8,000 support and it is currently consolidating losses.
- There is a declining channel forming with resistance near $ 8,350 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The price remains at a risk of more losses as long as it is trading below the $ 8,750 resistance area.
Bitcoin price is trading in a downtrend below $ 9,000 against the US Dollar. BTC is likely to test the $ 7,500 support or $ 7,200 before a substantial recovery.
Bitcoin Price Weekly Analysis (BTC)
This past week, there was a strong decline in BTC below the $ 10,000 support area against the US Dollar. The BTC/USD pair broke many supports near $ 9,500 and $ 9,000 to enter a bearish zone. Moreover, there was a close below $ 9,000 and the 100 simple moving average (4-hours). Finally, the price broke the $ 8,000 support and traded to a new monthly low near $ 7,742.
Recently, it started an upside correction above $ 8,000. Moreover, there was a break above the 50% Fib retracement level of the recent decline from the $ 8,677 high to $ 7,742 low. However, the upward move was capped by the $ 8,450 level. It seems like the 61.8% Fib retracement level of the recent decline from the $ 8,677 high to $ 7,742 low rejected the recovery.
Moreover, there is a declining channel forming with resistance near $ 8,350 on the 4-hours chart of the BTC/USD pair. If there is an upside break above $ 8,350 and $ 8,450, the price could recover further. The main resistance on the upside is near the $ 8,750 level. A successful close above $ 8,750 and a follow through above $ 9,000 is needed for a strong recovery in bitcoin in the near term.
On the downside, an initial support is near the $ 7,900 and $ 7,850 levels. If there is a downside break below the $ 7,850 support, the price could break the last swing low and continue lower. The main target for the bears could be $ 7,500. If there are more downsides, the price may perhaps test the $ 7,200 level.
Looking at the chart, bitcoin price is clearly trading in a bearish zone below the $ 8,750 and $ 9,000 resistance levels. It seems like there are chances of more downsides below $ 7,850 and $ 7,750. Once the current wave is complete near $ 7,500 or $ 7,200, the price could start a strong recovery.
4 hours MACD – The MACD for BTC/USD is struggling to gain strength in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is still well below the 40 level, with bearish signs.
Major Support Level – $ 7,850
Major Resistance Level – $ 8,750
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