Key Points
- Bitcoin price failed to break the $3,475 and $3,485 resistance levels and declined against the US Dollar.
- There was a break below an ascending channel with support at $3,405 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price may continue to move down towards $3,255 or it could even decline to a new weekly low.
Bitcoin price struggled to gain pace above $3,475 and retreated against the US Dollar. BTC remains at a risk of more declines below the $3,250 support level.
Bitcoin Price Analysis
Recently, bitcoin price started a short term upside correction from the $3,295 low against the US Dollar. The BTC/USD pair traded above the $3,400 resistance and the 100 hourly simple moving average. Besides, there was a break above the 23.6% Fib retracement level of the last decline from the $3,635 high to $3,295 low. The price succeeded in clearing a major bearish trend line with resistance at $3,400 on the hourly chart.
However, buyers struggled to clear the $3,475 and $3,485 resistance levels. A short term top was carved near $3,485. It seems like the price was rejected near the 50% Fib retracement level of the last decline from the $3,635 high to $3,295 low. It broke an ascending channel with support at $3,405 on the same chart. There was also a close below the $3,400 level and the 100 hourly SMA. The current price action suggests that the price may decline towards the $3,295 low or the $3,250 support. If sellers remain in action, the price could decline to a new weekly low below $3,240.
Looking at the chart, bitcoin price may continue to trade in a range below $3,475. It could either bounce back from $3,295 or break the $3,250 support for an extended decline.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is now placed well below the 50 level.
Major Support Level – $3,295
Major Resistance Level – $3,475
