Bitcoin price is struggling to make a move higher, as there is a monster resistance formed on the daily chart (data feed from HitBTC).
The price is below the 100-day simple moving average, which is acting as a sell area.
On the hourly chart via the data feed from Bitstamp, there was a minor bullish break that may encourage buyers in the short term.
Bitcoin price is showing bullish signs on the lower time frame chart, but the daily chart is pointing towards a crucial break in the near term.
Can Bitcoin Price Recover?
Bitcoin price remained under a lot of bearish pressure this week, as there was a monster resistance on the daily chart formed. The price continuously found sellers near the 100-day simple moving average (daily chart and data feed from HitBTC). It looks like a solid bearish structure formed on the daily chart, and if sellers gain control, then the price may head lower in the near term. There is a bullish trend line formed on the same chart, which is currently preventing a break in the price.
However, the price has to move in a direction. Either, there will be a break above the 100-day SMA (data feed from HitBTC) or there will be a break below the trend line and support area. Now, if we look at the technical indicators, then the daily RSI is below the 50 level, suggesting that sellers are in control. Moreover, the daily MACD is almost flat, which is a concern for buyers. So, if at all sellers step in, the chances of a break down is more compared with a move higher. The price is even struggling to clear the 23.6% Fib retracement level of the last drop from the $470 high to $361 low.
On the flip side, if there is a break above the 100 MA, then it could open the doors for more gains in the near term. The next hurdle on the upside in that situation may be around the 50% Fib retracement level of the last drop from the $470 high to $361 low. If we look at the lower timeframe chart, like the hourly chart via the data feed from Bitstamp, then there is a positive sign.
There was a contracting triangle pattern formed on the hourly chart, which was broken by buyers to clear the way for more upsides. The price even settled above the 100 hourly simple moving average, which is a bullish sign. However, the $380 level is acting as a resistance, which may call for a correction in the short term.
On the downside, an initial support can be around the 38.2% Fib retracement level of the last leg from the $373 low to $381 high. The most important one is around the 50% Fib, as it is around the broken triangle trend line that may act as a barrier for sellers.
Looking at the indicators:
Hourly MACD – The hourly MACD is in the bullish zone that may encourage buyers moving ahead.
RSI (Relative Strength Index) – The hourly RSI is above the 50 level, which is a short-term bullish sign for the buyers.
Intraday Support Level – $374
Intraday Resistance Level – $380