BTC/USD: Weekly Support Vulnerable; Additional Underperformance
Against the US dollar, the price of Bitcoin wrapped up the week considerably off best levels, despite shaking hands with support on the weekly timeframe at $25,381 last week. The test of support, as I communicated in previous analysis, follows a rejection from weekly resistance overhead at $30,644. The key observation for me this week is the weekly support level at $25,381; rupturing this base unearths weekly support from $23,144, followed by another layer of support at $19,985. Technically speaking, the risk of further declines is possible above $25,381, considering the feeble buying so far. Assuming sellers do indeed make a push, this could also see the beginnings of an early trend reversal unfold if we nudge beneath the $24,750 low (the most recent higher low formed on 15 June).
You will note that on the daily timeframe, mid-week trading observed price connect with resistance at $27,221, a level accompanied by the widely watched 200-day simple moving average (often serving as dynamic support and resistance), currently at $27,559. The combination of this technical resistance was evidently sufficient for technical sellers to put in an appearance and cap buying off the weekly support highlighted above at $25,381. This—coupled with the Relative Strength Index (RSI) recoiling from the lower side of the 50.00 centreline (negative momentum)—places a bold question mark on the weekly support this week and throws light on daily support at $24,262.
As we move to the H1 timeframe, $25,936 is a key short-term level. You will note that the level was breached in recent trading, potentially signalling a willingness to retest the mettle of weekly support at $25,381 and opening the door for short-term breakout selling opportunities. Interestingly, I also see limited support on the H1 chart until as far south as $24,286, indicating that price could tunnel through $25,381 in the following weeks.
You will note that on the daily timeframe, mid-week trading observed price connect with resistance at $27,221, a level accompanied by the widely watched 200-day simple moving average (often serving as dynamic support and resistance), currently at $27,559. The combination of this technical resistance was evidently sufficient for technical sellers to put in an appearance and cap buying off the weekly support highlighted above at $25,381. This—coupled with the Relative Strength Index (RSI) recoiling from the lower side of the 50.00 centreline (negative momentum)—places a bold question mark on the weekly support this week and throws light on daily support at $24,262.
As we move to the H1 timeframe, $25,936 is a key short-term level. You will note that the level was breached in recent trading, potentially signalling a willingness to retest the mettle of weekly support at $25,381 and opening the door for short-term breakout selling opportunities. Interestingly, I also see limited support on the H1 chart until as far south as $24,286, indicating that price could tunnel through $25,381 in the following weeks.
Given the lack of volatility over the last couple of weeks, much of the following analysis will echo thoughts presented in previous analysis (two paragraphs below):
The test of weekly support follows a rejection from weekly resistance overhead at $30,644. The key observation for me this week is the weekly support level at $25,381; rupturing this base unearths weekly support from $23,144, followed by another layer of support at $19,985. Technically speaking, the risk of further declines is possible above $25,381, considering the feeble buying so far. Assuming sellers do indeed make a push, this could also see the beginnings of an early trend reversal unfold if we nudge beneath the $24,750 low (the most recent higher low formed on 15 June).
You will note that on the daily timeframe, price recently connected with resistance at $27,221, a level accompanied by the widely watched 200-day simple moving average (often serving as dynamic support and resistance), currently at $27,613. The combination of this technical resistance was evidently sufficient for technical sellers to put in an appearance and cap buying off the weekly support highlighted above at $25,381. This—coupled with the Relative Strength Index (RSI) recoiling from the lower side of the 50.00 centreline (negative momentum)—places a bold question mark on the weekly support this week and throws light on daily support at $24,262.
As we move to the H1 timeframe, $25,936 is a key short-term level. You will note that the level has withstood several upside attempts this month—one particularly stood out last week, reaching a high of $26,460. Sellers continuing to defend the H1 resistance signals a willingness to challenge the position of weekly support at $25,381. Interestingly, limited support is seen on the H1 chart until as far south as $24,286, indicating that price could eventually tunnel through $25,381 in the following weeks and present a bearish theme to work with.