- Bitcoin price was under some pressure due to solid rise of BCH against the US Dollar above $800.
- The BTC/USD pair is currently trading above a bullish trend line positioned at $4000 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
- As long as the price is above the $4000 level, it may recover in the near term.
Bitcoin price failed to move above the $4475 level against the US Dollar, and BTC/USD is now trading near a major support area.
Bitcoin Price Support
Bitcoin price made a good ground this past week above $4000 against the US Dollar. However, the price failed to break the $4500 level and started a downside move. The decline was also due to an increase of buying interest in BCH, which traded above the $800 level. There was a decline in BTC price below the 23.6% Fib retracement level of the last wave from the $3232.76 low to $4475.37 high. The price was also able to move below a crucial bullish trend line at $4180 on the 4-hours chart.
The downside move was prevented by another bullish trend line positioned at $4000 on the same chart. Moreover, the 38.2% Fib retracement level of the last wave from the $3232.76 low to $4475.37 high acted as a support. The pair is holding the bullish trend line well and currently trading above $4000. It has to stay above $4000 if buyers have to take the price back towards $4400.
A break and close below $4000 could take the price towards the 61.8% Fib retracement level of the last wave from the $3232.76 low to $4475.37 high. Overall, the $4000 support holds the key in the short term.
Looking at the technical indicators:
4-hours MACD – The MACD has just moved into the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI has also moved below the 50 level.
Major Support Level – $4000
Major Resistance Level – $4180
Charts courtesy – SimpleFX
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