- Bitcoin price started a downside correction after trading above $4,080 against the US Dollar.
- There is a major bullish trend line formed with support at $3,940 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price is likely to find bids near $3,940 and $3,900 for a fresh upward move in the near term.
Bitcoin price corrected lower below $4,000 against the US Dollar. BTC is now trading above the $3,940 and $3,900 support levels and it could bounce back.
Bitcoin Price Analysis
Yesterday, we saw a nice upward move above $4,000 in bitcoin price against the US Dollar. The BTC/USD pair gained bullish momentum and traded towards the $4,100 level. A new weekly high was formed at $4,084 and later the price started a downside correction. It moved below the $4,000 and $3,980 support levels. Moreover, there was a break below the 23.6% Fib retracement level of the recent upside from the $3,759 low to $4,084 high.
The price traded close to the $3,900 level and tested the $3,920 support. There was no complete test of the 50% Fib retracement level of the recent upside from the $3,759 low to $4,084 high. At the outset, the price is consolidating above the $3,950 level. On the downside, the main support is near $3,950. There is also a major bullish trend line formed with support at $3,940 on the hourly chart of the BTC/USD pair. Below the trend line, the next key support is near the $3,920 level. On the upside, there is a connecting bearish trend line with resistance at $4,000 on the same chart. Therefore, the price could make the next move either above $4,000 or below $3,920 in the near term.
Looking at the chart, bitcoin price seems to be preparing for the next move either above $4,000 or below $3,920. Above $4,000, BTC could test the $4,080 and $4,100 resistance levels.
Hourly MACD – The MACD for BTC/USD is now placed in the bearish zone, indicating a negative bias.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level, with a bearish angle.
Major Support Level – $3,940
Major Resistance Level – $4,000
Author: Aayush Jindal