Key Points
- Bitcoin gold price failed to move above the $260 resistance and declined against the US Dollar.
- There was a break below a contracting triangle with support at $245 on the hourly chart of BTG/USD (data feed from Bitfinex).
- The pair might continue to decline toward the $230 and $220 support levels in the near term.
Bitcoin gold price reacted downside from the $260 resistance against the US Dollar. BTG/USD may now extend declines towards the $220 level.
Bitcoin Gold Price Downside Move
There was a long struggle to break the $260 and $270 resistance levels in bitcoin gold price against the US Dollar. The price failed to settle above the $260 and later started a downside move. It broke the 23.6% Fib retracement level of the last wave from the $208 low to $260 high. The downside move was strong, as the price broke the $250 support and even closed below the 100 hourly simple moving average.
Moreover, there was a break below a contracting triangle with support at $245 on the hourly chart of BTG/USD. This clearly points to an increase in selling pressure below $250 on BTG. The pair is currently trading around the 50% Fib retracement level of the last wave from the $208 low to $260 high. It seems like the price might continue to decline in the near term toward $230 and $220. On the upside, an initial resistance is around $245.
However, the most important resistance is around $250-255. There are two bearish trend lines positioned around $255 on the same chart. Thus, the $255-260 resistance might continue to prevent upsides in bitcoin gold price. On the downside, the next major support is at $220 followed by $200.
Looking at the technical indicators:
Hourly MACD – The MACD for BTG/USD is currently in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTG/USD is moving lower towards the 30 level.
Major Support Level – $220
Major Resistance Level – $260
Charts courtesy – Trading View, Bitfinex
