Key Points
- Bitcoin price after a nasty decline towards the $2965 level against the US Dollar found support.
- There are two major bearish trend lines forming with resistance near $3900-4000 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
- The pair might struggle to move back above the $4000 level considering the current market sentiment.
Bitcoin price declined sharply below $3000 against the US Dollar before recovering. BTC/USD now faces many hurdles near $3900-4000 for further recoveries.
Bitcoin Price Upside Hurdle
This past week, we saw a major decline in Bitcoin price from the $4400 swing high against the US Dollar. The price tumbled and moved below the $3500 and $3000 support levels. A low was formed at $2965 from where a recovery was initiated. The price moved above the 38.2% Fib retracement level of the last decline from the $4370 high to $2965 low. However, the upside move was capped near the $3800-3900 levels.
It seems like the 4-hours chart of BTC/USD is very similar to the 4-hours chart of ETH/USD considering the structure and resistances. The BTC/USD pair failed to break the 61.8% Fib retracement level of the last decline from the $4370 high to $2965 low. On the upside, there are two major bearish trend lines forming with resistance near $3900-4000 on the 4-hours chart. These trend lines are key and it won’t be easy for the price to move above $4000.
Moreover, the 100 simple moving average (H4) is positioned near $4230 to act as a monster resistance. As long as the price is below the $4000 level, there is a chance of another minor dip. On the downside, the $3500 and $3200 levels are important barriers for sellers.
Looking at the technical indicators:
4-hours MACD – The MACD has almost reduced the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI is currently just below the 50 level.
Major Support Level – $3500
Major Resistance Level – $4000
Charts courtesy – SimpleFX
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