- Bitcoin price fell sharply during the past few days and broke the $2400-2350 support against the US Dollar.
- There was a break below a major contracting triangle with support at $2420 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
- The price is currently trading near major pivot of $2000, and struggling to hold it.
Bitcoin price crashed below $2200 recently against the US Dollar, and now BTC/USD is struggling to hold a monster support area at $2000.
Bitcoin Price Breaks Down
This past week was mostly bearish for Bitcoin price, as it moved below the $2400 support area against the US Dollar. In the last weekly analysis, I highlighted a monster breakout pattern with support at $2400-20 on the 4-hours chart of BTC/USD. It seems like the pair failed to hold the same and settled below $2400. There was a sharp downside move, as the pair traded below the $2250 and $2100 support levels.
At the moment, the price is trading near another crucial support at $2000. Buyers are struggling to hold $2000, which is why BTC remains at risk. The $2000 support is very important, especially a daily close above or below $2000. If the price manages to avoid a daily close below $2000, there are strong chances of a recovery. On the other hand, if there is a close below $2000, there can be more declines towards $1800.
On the upside, there is a bearish trend line at $2150 on the 4-hours chart. Moreover, the 38.2% Fib retracement level of the last decline from the $2396 high to $1958 low might also act as a hurdle near $2125. Selling rallies near $2125-2150 may be considered in the short term.
Looking at the technical indicators:
4-hours MACD – The MACD is heavily bearish and signaling more declines
4-hours RSI (Relative Strength Index) – The RSI is attempting a recovery from the oversold levels.
Major Support Level – $2000
Major Resistance Level – $2150
Charts courtesy – SimpleFX