Weekly Bitcoin Price Analysis - BTC / USD 09/17/2017

The price of Bitcoin fell sharply below $3,000, but very quickly began to rise again. BTC/USD is now facingobstacles near the levels of 3900-4000 dollars preventing its further recovery

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Key points

• The price of bitcoin after the strongest decline to the level of $ 2965 found support.
• The four-hour BTC/USD chart has two major bearish trend lines forming with resistance around $3,900-$4,000.
• The pair could move above the $4,000 level given current market sentiment.

Bitcoin Price

Last week we saw significantdecline in the price of Bitcoin from a high of $4400. The price fell and moved below the support levels of $3500 and $3000. A low support level was formed at the $2965 line from which the recovery began. The price exceeded the 38.2% Fibonacci retracement level of the last decline from the $4,370 high to $2,965. However, the upside was capped near the $3,800-$3,900 levels.

It looks like the 4 hour BTC/USD chart is verysimilar to the ETH/USD 4-hour chart taking into account structure and resistances. The BTC/USD pair failed to clear the 61.8% Fibonacci retracement level of the latest decline from the $4,370 high to $2,965. On the other hand, two major bearish trend lines are forming on the 4-hour chart with resistance near $3,900-$4,000. These trend lines are key and it will not be easy to force the price above $4,000.

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Moreover, the 100 simple moving average is(H4) is located around $4230 and will act as resistance. As long as the price is below the $4,000 level, there is a chance of another minor decline. On the other hand, the $3500 and $3200 levels are important barriers for sellers.

Looking at technical indicators:

4 hour MACD&#8212; MACD has declined into the bearish zone.

4-hour RSI (relative strength index)&#8212; The RSI is currently just below the 50 level.

Basic level of support&#8212; US$3500

Main resistance level&#8212; 4000 US dollars