Key Points
- Bitcoin price is under pressure below the $3,500 and $3,520 resistance levels against the US Dollar.
- Yesterday’s highlighted crucial bearish trend line is intact with resistance at $3,520 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price may continue to find a strong resistance near the $3,500 and $3,520 levels.
Bitcoin price is struggling to climb above the $3,500-3,520 area against the US Dollar. BTC might decline towards the $3,340 support in the short term before higher.
Bitcoin Price Analysis
There was a slow and steady decline in bitcoin price from the $3,638 high against the US Dollar. The BTC/USD pair was rejected near $3,640-50 zone after it recovered from the $3,253 low. Moreover, it failed near the 61.8% Fib retracement level of the last slide from the $3,851 high to $3,208 low. The price recently declined below $3,520 and $3,480 to enter a short term bearish zone.
During the decline, sellers pushed the price below $3,400 and the 100 hourly simple moving average. Besides, the price broke the 61.8% Fib retracement level of the recent wave from the $3253 low to $3,638 high. However, the $3,340-50 support zone is acting as a decent support. On the upside, an initial resistance is near the $3,445 level, above which the key hurdle is near $3,520. More importantly, yesterday’s highlighted crucial bearish trend line is intact with resistance at $3,520 on the hourly chart of the BTC/USD pair. Therefore, the price is likely to struggle near the $3,500 and $3,520 resistance levels.
Looking at the chart, bitcoin price may perhaps rise to test the $3,520 resistance before lower. On the downside, if the price finds a strong buying interest near $3,340, there could be a fresh upward move above $3,500-20.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is about to move into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently near the 50 level.
Major Support Level – $3,340
Major Resistance Level – $3,520
