- Bitcoin price declined further and traded towards the $3,320 support level against the US Dollar.
- There is a key connecting bearish trend line formed with resistance at $3,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price could correct higher, but it is likely to face sellers near $3,375 and $3,400.
Bitcoin price extended losses below the $3,350 support against the US Dollar. BTC might attempt a recovery, but sellers are likely to defend gains above the $3,400 resistance.
Bitcoin Price Analysis
Yesterday, we saw a major decline below the $3,400 support in bitcoin price against the US Dollar. The BTC/USD pair even broke the $3,350 support and traded close to the $3,320 level. A new weekly low was formed at $3,338 and the price settled well below the 100 hourly simple moving average. Later, the price started consolidating gains and corrected above the $3,350 level. There was a break above the 23.6% Fib retracement level of the recent drop from the $3,445 swing high to $3,338 low. However, the upward move was capped by the $3,375 resistance levels.
Besides, there are many hurdles for buyers near the $3,400 and $3,420 levels. There is also a key connecting bearish trend line formed with resistance at $3,400 on the hourly chart of the BTC/USD pair. The trend line coincides with the 50% Fib retracement level of the recent drop from the $3,445 swing high to $3,338 low. Moreover, the 100 hourly simple moving average is near the trend line and the $3,410 level. Therefore, upsides from the current levels are likely to face sellers near $3,375 and $3,400.
Looking at the chart, bitcoin price is trading in a bearish zone below the $3,400 resistance. Only a daily close above $3,400 and $3,420 could open the doors for more gains. On the downside, the main support are $3,320 and $3,300.
Technical indicators
Hourly MACD – The MACD moved back in the bullish, but it may dive back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD recovered recently, but it failed to move above the 50 level.
Major Support Level – $3,320
Major Resistance Level – $3,400
