- 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.
Technical indicators
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