- Bitcoin price declined below the $3,550 support and tested the $3,380 level against the US Dollar.
- There was a break below a major bullish trend line with support at $3,590 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price is currently recovering, but it could face strong resistances near $3,550. $3,580 and $3,640.
Bitcoin price extended losses below the $3,600 support against the US Dollar. BTC may recover in the short term, but upsides are likely to be capped by $3,600-3,650.
Bitcoin Price Analysis
In the weekly analysis, we saw a consolidation pattern above the $3,550 support in bitcoin price against the US Dollar. The BTC/USD pair traded in a range for some time, but later sellers managed to push the price below $3,550. The price declined heavily and broke the $3,500 and $3,400 support levels. There was even a close below the $3,500 level and the 100 hourly simple moving average. A new monthly low was formed at $3,372 and later the price started an upside correction.
It moved above the $3,500 level to move into a short term positive zone. There was a break above the 50% Fib retracement level of the last dive from the $3,649 high to $3,372 low. On the upside, there are many barriers for buyers, starting with $3,550. The previous support near $3,550 and $3,560 may perhaps act as a strong resistance. Above $3,560, the 76.4% Fib retracement level of the last dive from the $3,649 high to $3,372 low is at $3,585. Finally, there is a connecting bearish trend line in place with resistance at $3,600 on the hourly chart.
Looking at the chart, bitcoin price is likely to face a lot of sellers near the $3,550, $3,560, $3,585 and $3,600 levels. The main resistance is at $3,640, above which there is a chance of a solid recovery to $3,800. On the downside, a break below $3,375 could lead the price to $3,220.
Hourly MACD – The MACD for BTC/USD moved back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is moving higher towards the 50 level, with a positive angle.
Major Support Level – $3,400
Major Resistance Level – $3,640
Author: Aayush Jindal