Key Points

Bitcoin price recovered a few points recently against the US Dollar, but later found resistance near $590.

There was a crucial contracting triangle pattern formed on the hourly chart (data feed from SimpleFX) of BTC/USD, which was cleared by sellers for a downside move.

An hourly close below it could ignite further losses in BTC/USD in the short term.

Bitcoin price broke a major support area against the US Dollar, and if the current trend remains intact, there can be more losses in BTC/USD.

Bitcoin Price Sell

Bitcoin price after trading as low as $578 against the US Dollar recovered and corrected higher to trade near $590 where it found sellers. The price traded close to the 50% Fib retracement level of the last drop from the $602 high to $578 low. It acted as a resistance along with the 100 hourly simple moving average. The BTC/USD failed to break it and started moving down.

The price formed a crucial contracting triangle pattern formed on the hourly chart (data feed from SimpleFX) of BTC/USD. After a consolidation phase the price moved down, and broke the triangle support area. So, technically, it looks like the pair completed a short-term correction, and moved down once again. The BTC sellers need an hourly close below the triangle support trend line, which may ignite further declines. It almost looks possible looking at the last 2-3 candles.

If the price corrects higher from the current levels, then the same broken trend line can be seen as a sell area. The most important resistance on the upside is around the 100 hourly SMA.

Looking at the technical indicators:

Hourly MACD – The MACD is now in the bearish slope, which is a not a good sign for the bulls.

Hourly RSI (Relative Strength Index) – The RSI is around the oversold area, which may ignite a minor pullback in BTC/USD.

Major Support Level – $578

Major Resistance Level – $585

Charts courtesy – SimpleFX