- Bitcoin price struggled to climb above the $3,990 and $4,000 resistance levels against the US Dollar.
- The price declined again and retested the key $3,940 support area and the 100 hourly SMA.
- There is a short term bearish trend line in place with resistance at $3,980 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- Buyers might have the last chance for an upside break above the $4,000 resistance.
Bitcoin price is holding an important support near $3,940 against the US Dollar. BTC is likely to make the next move either above $4,000 or below the $3,900 support level.
Bitcoin Price Analysis
Yesterday, we saw the start of a downside correction in bitcoin price from the $4,041 high against the US Dollar. The BTC/USD pair corrected lower and traded below the $4,020 and $4,000 support levels. There was a break below the 23.6% Fib retracement level of the last wave from the $3,846 low to $4,041 high. Besides, there was a close below the $4,000 support and the price tested the $3,940 support area.
More importantly, the 50% Fib retracement level of the last wave from the $3,846 low to $4,041 high acted as a strong support. Sellers made two attempts to clear the $3,940 support, but they failed to gain strength. Similarly, buyers pushed the price above the $3,980 level, but they struggled to keep the price in a positive zone. The price was recently rejected near the $3,980 level. It is currently moving lower and it could retest the $3,940 support area.
It seems like buyers might have the last chance for an upside break above the $4,000 resistance. There is also a short term bearish trend line in place with resistance at $3,980 on the hourly chart of the BTC/USD pair. Therefore, buyers need to clear the trend line and the $4,000 resistance for a fresh upward move. If they fail, there could be a strong decline below the $3,940 support area. Besides, a close below the $3,940 support and the 100 hourly SMA could push the price towards the $3,900 or $3,880 support.
Looking at the chart, bitcoin price is clearly approaching the next break either above the $4,000 resistance or below the $3,940 support. As long as the price is above the 100 hourly SMA, there are chances of an upside break above $4,000. The next key resistance is at $4,040, followed by $4,100.
Technical indicators:
Hourly MACD – The MACD is slowly moving into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD recently tested the 40 level and it is currently moving towards 50.
Major Support Levels – $3,940 followed by $3,900.
Major Resistance Levels – $3,980, $4,000 and $4,040.
