Key Points
- Bitcoin price extended losses below the $4,000 and $3,600 supports against the US Dollar.
- There is a significant bearish trend line formed with resistance at $3,630 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair is currently consolidating losses above $3,200, with resistances near $3,500 and $3,600.
Bitcoin price is in a major downtrend below $4,000 against the US Dollar. BTC/USD may continue to struggle to recover above the $3,600-3,700 resistance zone.
Bitcoin Price Analysis
This past week, bitcoin price declined below the $4,000 support level against the US Dollar. The BTC/USD pair gained bearish momentum and traded below the $3,700 and $3,600 support levels. The decline was such that the price traded close to the $3,200 level. The price formed a new yearly low at $3,215 and it is currently well below the 100 simple moving average (4-hours).
Recently, there was a tiny upside correction above $3,400. BTC also moved above the 23.6% Fib retracement level of the recent decline from the $4,051 high to $3,215 low. However, the recovery faced a lot of selling interest near $3,550-3,600. Besides, there is a significant bearish trend line formed with resistance at $3,630 on the 4-hours chart of the BTC/USD pair. The trend line is close to the 50% Fib retracement level of the recent decline from the $4,051 high to $3,215 low. Therefore, it won’t be easy for buyers to surpass the $3,550, $3,600 and $3,700 resistance levels. Above $3,700, the next key hurdle for buyers is at $4,000.
Looking at the chart, BTC price is likely to maintain a bearish tone below $3,600. Once the current correction is complete, the price may even break the $3,200 swing low. The next key support is at $3,000 followed by $2,800.
Looking at the technical indicators:
4-hours MACD – The MACD for BTC/USD is slightly placed in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is just near the 40 level.
Major Support Level – $3,200
Major Resistance Level – $3,600
