Bitcoin Price Analysis: BTC/USD Crucial Resistance at $1070
- Posted on Mar 30, 2017
Bitcoin price somehow managed to move back above $1000 against the US Dollar found resistance, but let’s find out why $1070 is a monster barrier for BTC/USD.
Looking at the 4-hours chart, there is a crucial bearish trend line with resistance at $1070 for BTC/USD (data feed via Poloniex), which is acting as a barrier. Let’s read more about it.
Bitcoin Price Resistance and Trend
Earlier this month, we saw a decline in Bitcoin price towards $900 against the US Dollar. Later, the price somehow managed to move back above $1000. It is now placed comfortably above $1020, but facing a lot of hurdles.
First, there is a crucial bearish trend line with resistance at $1070 on the 4-hours chart of BTC/USD (data feed via Poloniex). The same level acted as a resistance on 2-3 times near $1065 and $1070.
Second, the 100 hourly simple moving average is positioned above it at $1072. It means the highlighted resistance is clearly a crucial juncture for BTC. As long as the price is below $1070, it may continue to face offers.
Although buyers are fighting hard near $1065 at the moment, but the momentum is simply not there. On the downside, an initial support is at 38.2% Fib retracement level of the last wave from the $888 low to $1065 high.
However, the most important one is around $980, which is near the 50% Fib retracement level of the last wave from the $888 low to $1065 high.
We should keep monitoring the trend line resistance near $1065 and $1070. A break above it could take the price towards $1120. A failure on the other hand might spark a downside move towards $980. If you are looking to buy, then wait for a break above $1070 before getting aggressive.
Chart Source – TradingView.com and data feed by Poloniex