Published: 2018-10-31 09:28:18
- Bitcoin price is currently consolidating losses above the $6,240 support against the US Dollar.
- There is a major bearish flag forming with resistance at $6,310 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price remains at a risk of more losses below the $6,240 and $6,200 support levels.
Bitcoin price is under pressure below $6,300 against the US Dollar. BTC/USD is likely preparing for the next downside break below $6,202.
Bitcoin Price Analysis
Yesterday, we saw a major downside move below the $6,350 support in bitcoin price against the US Dollar. The BTC/USD pair declined heavily and broke the $6,240 support and the 100 hourly simple moving average. It traded as low as $6,202 and later started a short term correction. The price moved above the 23.6% Fib retracement level of the recent drop from the $6,433 high to $6,202 low.
However, the price struggled to move above the $6,300 resistance. More importantly, there was no test of the 50% Fib retracement level of the recent drop from the $6,433 high to $6,202 low. At the moment, there is a major bearish flag forming with resistance at $6,310 on the hourly chart of the BTC/USD pair. If the pair fails to stay above the flag support at $6,255, there could be a fresh decline towards the $6,202 low. If sellers remain in action, the price may even break the $6,202 low and trade towards the $6,150 level. On the flip side, a proper break above the flag resistance could push the price towards the $6,350 resistance and the 100 hourly SMA.
Looking at the chart, bitcoin price may continue to struggle to recover above the $6,300 and $6,350 levels. Therefore, there is a risk of more losses below the $6,240 level.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is placed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is still below the 50 level.
Major Support Level – $6,240
Major Resistance Level – $6,300
The views and opinions expressed in the article Bitcoin Price Watch: BTC/USD’s Next Leg Lower Likely do not reflect that of 48coins.com nor of its originally published source. Article does not constitute financial advice. Proceed with caution and always do your own research.