- BTC/USD dived below $5,200 and explored the levels close to the key support at $5,000.
- The path of least resistance is to the south as the RSI points in a downward direction.
Looking at the 4-hour chart for BTC/USD pair, the short-term outlook is not impressive. However, the declining price is almost getting to a key support area that is likely to spark a fresh correction. Last week, Bitcoin faced rejection from the new 2019 high roughly at $5,648 (on Coinbase). The trend reversal came after Bitcoin defied the odds, championing a bullish momentum from the former bullish area at $5,200 stepping above $5,600.
Bitcoin Price Prediction Chart 4-hour – BTC/USD
The reversal could not find support at the ascending trendline, neither did the 100 simple moving average (SMA) 4-hour at $5,245.05 assists to cushion the losses. BTC/USD dived below $5,200 and explored the levels close to the key support at $5,000. The drop from the five-months high correlated with the flash drop in the 14-day Relative Strength Index (RSI) which targeted the oversold levels.
Meanwhile, the path of least resistance appears is to the south as the RSI points in a downward direction towards the oversold region. Investors who are looking forward to buying in at levels below the 200 Simple Moving Average (SMA) may find themselves disappointed the indicator has on several occasions been a barrier to declines since March.
However, all is not lost for Bitcoin as the short-term 100 SMA is trending above the 200 SMA in the 4-hour timeframe. In fact, any dips towards $5,000 will find support from the 200 SMA in addition to the key support at $5,000. Therefore, for buyers, levels close to $5,000 will a good entry position as the price is expected to resume the uptrend towards the highs above $5,600.
Bitcoin Key Technical levels
RSI 4-hour: 40.00
100 SMA 4-hour: $5,244.69 (limiting the upside).
200 SMA 4-hour: $5,000 (key support; rebound expected here).
Main support levels: $5,000, $4,800 and $4,000
Critical resistance areas: $5,244.69, $5,400 and $5,600.
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige