Key Points
- Bitcoin price dived against the US Dollar before ending the week and closed below $1000.
- The BTC/USD pair is now back trading higher, but facing a major confluence resistance near $960-980 on the 4-hours chart (data feed from SimpleFX).
- The price is also below the 100 simple moving average on the same chart, which may act as a resistance near $975.
Bitcoin price after a major downside move towards $820 against the US Dollar started recovering. Can BTC/USD overcome the $980 resistance again?
Bitcoin Price Resistance
We saw this past week how Bitcoin price made a new all-time high against the US Dollar to trade above the $1150 mark. Later, there was a solid downside move, taking the price lower by more than 20%. The price fell below the $1000 level and traded as low as $823 (data feed from SimpleFX). The price started moving higher once again, and moved above the 23.6% fib retracement level of the last decline from the $1302 high to $823 low.
However, the price is now approaching a monster resistance area of $960-980. The same area was a resistance earlier, and may now once again attempt to stop the upside move. Moreover, the 100 simple moving average is also around the same confluence resistance area near $975. Lastly, the 38.2% fib retracement level of the last decline from the $1302 high to $823 low is also waiting to act as a resistance on the upside.
So, if the BTC buyers have to take control once again, they need to push the price back above the $980 resistance at least. However, a daily close above $1000 is needed for more gains in the near term. Else, there is a chance of a downside reaction one more time.
Looking at the technical indicators:
4-hours MACD – The MACD is back in the bearish zone
4-hours RSI (Relative Strength Index) – The RSI is currently attempting to break the 50 level towards the upside, which is a positive sign.
Major Support Level – $900
Major Resistance Level – $980
Charts courtesy – SimpleFX
