- Bitcoin price failed to rally above $ 4,080 and declined heavily below $ 3,800 against the US Dollar.
- There was a break below a key bullish trend line with support at $ 4,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price tested the $ 3,550 support and it is currently consolidating losses above $ 3,600.
Bitcoin price made a sharp bearish turn below $ 4,000 and $ 3,800 against the US Dollar. BTC is now in a bearish zone and rallies near $ 3,800 could face a strong selling interest.
Bitcoin Price Analysis
Yesterday, we discussed a possible upside break above $ 4,100 and $ 4,200 in bitcoin price against the US Dollar. However, the BTC/USD pair failed to clear the key $ 4,080 resistance, resulting in a bearish reaction. The price declined heavily below the $ 4,000, $ 3,950 and $ 3,800 support levels. The decline was nasty as there was a close below $ 3,750 and the 100 hourly simple moving average.
During the decline, there was a break below a key bullish trend line with support at $ 4,000 on the hourly chart of the BTC/USD pair. The pair fell significantly and tested the next key support at $ 3,550-3,570. Later, the price started consolidating losses and traded above $ 3,600. An initial resistance is near the 23.6% Fib retracement level of the recent decline from the $ 4,037 high to $ 3,549 low. It seems like it won’t be easy for buyers to push the price above $ 3,660 or $ 3,680. If they succeed, the next major resistance is at $ 3,740. Moreover, the 50% Fib retracement level of the recent decline from the $ 4,037 high to $ 3,549 low is at $ 3,793.
Looking at the chart, bitcoin price is back in a bearish zone below $ 3,800 and $ 3,750. If sellers remain in action, there could be a downside break below the $ 3,550 and $ 3,540 support levels. On the other hand, a short term correction is likely to face sellers near $ 3,700 or $ 3,750.
Hourly MACD – The MACD for BTC/USD is slowly moving in the bearish zone, but the bias remains bearish.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 40 level, with minor recovery signs.
Major Support Level – $ 3,540
Major Resistance Level – $ 3,750