- Bitcoin price started a major downside move after it failed to break the $4,600 resistance against the US Dollar.
- There is a new bearish trend line in place with resistance at $4,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price is currently in a bearish zone and it could accelerate losses below the $4,000 level in the near term.
Bitcoin price failed to recover further above $4,700 and declined against the US Dollar. BTC/USD could accelerate declines below the $4,000 support area.
Bitcoin Price Analysis
Yesterday, there as a tiny upside correction above the $4,500 level in bitcoin price against the US Dollar. The BTC/USD pair failed to break the $4,600 resistance and remained well below the $4,700 pivot area. Later, the price started a downside move and traded below the $4,500 and $4,400 support levels. It is currently trading well below the $4,500 level and the 100 hourly simple moving average.
The price also declined below the 61.8% Fib retracement level of the last wave from the $4,048 low to $4,600 high. It has opened the doors for more losses below the $4,200 support area. It seems like the price may soon test the last swing low at $4,048. If sellers gain pace, there are high chances of a downside break below the $4,000 handle in the near term. The next support is near the $3,900 level. It coincides with the 1.236 Fib extension level of the last wave from the $4,048 low to $4,600 high. Below this, the price may perhaps decline towards the $3,800 level.
Looking at the chart, bitcoin price is clearly under a lot of pressure below $4,500. If sellers remain in action in the short term, there could be a sharp decline below $4,000.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is moving heavily in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently just near the 40 level.
Major Support Level – $4,000
Major Resistance Level – $4,500
Author: Aayush Jindal