Key Points
- Bitcoin price traded lower recently and broke the $4,120 support area against the US Dollar.
- There is a key bearish trend line in place with resistance at $4,180 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price is currently trading above the $3,880 support, but it is at a risk of more losses.
Bitcoin price failed to climb higher above $4,400 and declined against the US Dollar. BTC/USD remains sell on rallies near the $4,120 and $4,200 resistance levels.
Bitcoin Price Analysis
Recently, bitcoin price formed a decent support near the $3,880 level and climbed higher against the US Dollar. The BTC/USD pair traded higher and broke the $4,000 and $4,120 resistance levels. However, the price failed to settle above the $4,300 resistance and declined again. A high was formed at $4,286 and the price traded below the 100 hourly simple moving average.
Sellers pushed the price below the $4,000 support and a new intraday low was formed at $3,907. The price is currently consolidating above $3,900 and $3,880. An initial resistance is near the 23.6% Fib retracement level of the last decline from the $4,286 high to $3,907 low. However, the main resistance is near the $4,120 level and the 100 hourly simple moving average. There is also a key bearish trend line in place with resistance at $4,180 on the hourly chart of the BTC/USD pair. Below the trend line, the 61.8% Fib retracement level of the last decline from the $4,286 high to $3,907 low is at $4,142.
Looking at the chart, bitcoin price is clearly facing a lot of hurdles near the $4,120, $4,140 and $4,180 levels. Therefore, sellers remain in control as long as the price is below the $4,200 pivot level.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is placed heavily in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently well below the 40 level.
Major Support Level – $3,880
Major Resistance Level – $4,120
