Key Points
- Bitcoin price failed to gain momentum above $3,900 and declined recently against the US Dollar.
- There is a major contracting triangle formed with support at $3,765 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair is approaching the next significant break either above $3,850 or below $3,750.
Bitcoin price is trading near important support levels against the US Dollar. BTC/USD may soon make the next move either above $4,000 or below $3,500.
Bitcoin Price Analysis
This past week, bitcoin price moved higher above the $3,800 resistance against the US Dollar. However, the BTC/USD pair struggled a lot to clear the $3,900 resistance level. To start with, a swing low was formed near $3,720 and later the price started an upward move. It broke the $3,800 resistance and the 100 simple moving average (4-hours). The price even traded above the 50% Fib retracement level of the last decline from the $3,920 high to $3,722 low.
However, the price faced a strong resistance near the $3,850 and $3,870 levels. Besides, the 76.4% Fib retracement level of the last decline from the $3,920 high to $3,722 low also prevented gains. Buyers failed to push the price above $3,900 and later the price declined. It traded below $3,800 and the 100 SMA. Having said that, the price is now approaching the key support area near $3,765. More importantly, there is a major contracting triangle formed with support at $3,765 on the 4-hours chart of the BTC/USD pair.
Looking at the chart, BTC price seems to approaching the next significant break either above $3,850 or below $3,765. An upside break above $3,850 may push the price towards $4,000 and $4,200. On the other hand, a break below $3,765 could spark bearish moves towards $3,500 or $3,300.
Looking at the technical indicators:
4-hours MACD – The MACD for BTC/USD is placed in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI is currently well below the 50 level.
Major Support Level – $3,765
Major Resistance Level – $3,850