Key Points
- Bitcoin price declined further and broke the $3,295 and $3,200 supports against the US Dollar.
- There was a break below a major contracting triangle with support at $3,355 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price traded to a new weekly low at $3,150 and it is currently correcting losses.
Bitcoin price declined below the $3,200 support recently against the US Dollar. BTC could continue to face a lot of selling interest near the $3,350 and $3,375 levels.
Bitcoin Price Analysis
Yesterday, we discussed the chances of a fresh weekly low below $3,200 in bitcoin price against the US Dollar. The BTC/USD pair did trade lower and broke the $3,295 and $3,260 support levels. The price even broke the $3,200 support area to signal a major bearish wave. A new weekly low was formed at $3,150 and it seems like the price remains in a significant downtrend.
During the decline, there was a break below a major contracting triangle with support at $3,355 on the hourly chart of the BTC/USD pair. The pair is now trading well below the $3,400 level and the 100 hourly simple moving average. It recently corrected above the $3,230 level and the 23.6% Fib retracement level of the last slide from the $3,491 high to $3,150 low. However, buyers struggled to clear the $3,265-3,300 resistance zone. The next major hurdle is near the $3,360 level. It coincides with the 61.8% Fib retracement level of the last slide from the $3,491 high to $3,150 low. Besides, the triangle resistance trend line is at $3,375 to prevent gains.
Looking at the chart, bitcoin price is clearly trading in a bearish zone below $3,375. There could be more losses below $3,150 and $3,000 in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slowly reducing its bearish slope.
Hourly RSI (Relative Strength Index) – The RSI is still well below the 40 level.
Major Support Level – $3,200
Major Resistance Level – $3,375
