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Bitcoin price collapsed this past week vs the USD due to Chinese exchanges pausing withdrawals. It looks like BTC/USD may decline further.

Bitcoin price collapsed this past week vs the USD due to Chinese exchanges pausing withdrawals. It looks like BTC/USD may decline further.

This past week there was a strong downside move initiated in Bitcoin price taking it below the $1000 level against the US Dollar. The main reason was the PBOCs warning to Chinese Bitcoin exchanges, which resulted in suspension of withdrawals temporarily. The BTC to USD price dived down, and broke the $1050 and $1000 support levels to trade as low as $916.

However, the price later found support and started a recovery. It moved above the 23.6% Fib retracement level of the last decline from the $1114 high to $916 low. However, the upside seems to be limited near $995 and $1000. There is a short-term bearish trend line formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD. It is acting as a barrier near $995, and preventing gains.

There are a few other hurdles around the same level. Like, the 100 simple moving average (H4) at $998 is positioned to act as a resistance. Moreover, the 38.2% Fib retracement level of the last decline from the $1114 high to $916 low is also near the same resistance. All in all, it looks like the price may struggle to move back above $1000. If there is no close above it, the price may move down once again towards $950.

Looking at the technical indicators:

4-hours MACD The MACD is in the bearish zone with no major sign of a trend change.

4-hours RSI (Relative Strength Index) The RSI is steady below the 50 level, which is a bearish sign.

Major Support Level $950

Major Resistance Level $1000

Charts courtesy SimpleFX

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