- Bitcoin price declined below $4,000 and $3,600 before buyers appeared against the US Dollar.
- There is a major bearish trend line in place with resistance at $4,080 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price must break the $4,000 and $4,080 resistance to climb higher in the near term.
Bitcoin price nosedived below $4,000 and $3,800 against the US Dollar. BTC/USD is currently recovering, but the $4,000 barrier is now acting as a resistance.
Bitcoin Price Analysis
During the past three days, we saw a nasty decline below $4,000 in bitcoin price against the US Dollar. The BTC/USD pair even broke the $3,800 and $3,600 support levels to post a new multi month low. The price even spiked below the $3,500 level and settled well below the 100 hourly simple moving average. A low was formed at $3,449 and later the price started an upside correction.
It moved above the $3,600 and $3,800 resistance levels. More importantly, there was a break above the 50% Fib retracement level of the recent decline from the $4,340 high to $3,449 low. However, the upside move was capped by the $4,080-4,100 zone, which was a support earlier. Moreover, there is a major bearish trend line in place with resistance at $4,080 on the hourly chart of the BTC/USD pair. The pair was also rejected near the 76.4% Fib retracement level of the recent decline from the $4,340 high to $3,449 low. Clearly, the price is facing a solid resistance near the $4,080 level and the 100 hourly SMA.
Looking at the chart, bitcoin price must break the $4,000 and $4,080 resistance to climb higher towards $4,500. If buyers fail to gain pace above $4,080 and the 100 hourly SMA, there could be a sharp decline.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently well above the 50 level.
Major Support Level – $3,800
Major Resistance Level – $4,080
Author: Aayush Jindal