Bitcoin (BTC) Price Looks To Reclaim $4,000 After Sharp Sell-off

Aayush Jindal

1 year ago

2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin price traded to a new weekly high above $4,060 and later declined sharply against the US Dollar.
The price broke the key $3,960 support level and tested the next main support at $3,875.
There is a short-term connecting bearish trend line formed with resistance near $4,015 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The recent rebound was positive, but it won’t be easy for buyers to reclaim $4,000 and $4,020.

Bitcoin price rebounded sharply after a massive drop below $3,900 against the US Dollar. BTC must climb above $4,000 to move back in a positive zone and revisit $4,060.

Bitcoin Price Analysis

Yesterday, there was an upside extension in bitcoin price above the $4,020 resistance against the US Dollar. The BTC/USD pair broke the $4,050 resistance and traded to a new monthly high at $4,065. However, buyers failed to stay in control, resulting in a sharp decline below $4,050 and $4,020. The price even broke the $4,000 support and settled below the 100 hourly simple moving average. The decline was strong as the price even failed to hold the $3,950 and $3,900 support levels.

However, the next key support at $3,875 prevented further declines. A swing low was formed at $3,872 and later the price bounced back sharply. It broke the $3,900 resistance and the 23.6% Fib retracement level of the recent decline from the $4,065 high to $3,872 low. More importantly, the price rebounded above the $3,950 resistance level. Finally, there was a close above the 50% Fib retracement level of the recent decline from the $4,065 high to $3,872 low.

At the moment, the price is facing a strong resistance near $3,990 and the 100 hourly simple moving average. The main resistance is near $4,000 and the 61.8% Fib retracement level of the recent decline from the $4,065 high to $3,872 low. Besides, there is a short-term connecting bearish trend line formed with resistance near $4,015 on the hourly chart of the BTC/USD pair. Therefore, a break above the $4,000 and $4,020 resistance levels is must for additional gains in the coming sessions.

Looking at the chart, bitcoin price rebounded nicely from the $3,875 support level. However, buyers might find it difficult to gain strength above $4,000 and $4,020. If they continue to face hurdles, there could be another bearish reaction below the $3,950 and $3,920 support levels.

Technical indicators:

Hourly MACD – The MACD is slowly moving in the bullish zone, with a positive bias.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting higher, but it is still well below the 50 level.

Major Support Levels – $3,950 followed by $3,920.

Major Resistance Levels – $4,000, $4,020 and $4,060.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he's trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush's journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.