Key Points
- Bitcoin price is struggling to move above $4200 against the US Dollar and heading lower.
- The BTC/USD pair is currently attempting a downside break below a contracting triangle at $4030 on the hourly chart (data feed from SimpleFX).
- A close below $4000 could result in more declines towards $3800 in the short term.
Bitcoin price is under short-term bearish pressure below $4100 against the US Dollar, and BTC/USD must hold $4000 to avoid more declines.
Bitcoin Price Support
There was a minor slide in Bitcoin price below $4200 against the US Dollar. The price made a downside move and traded below $4150 and the 100 hourly simple moving average. A close below $4200 and the 100 hourly SMA is a short-term bearish sign. The price recently traded towards the 38.2% Fib retracement level of the last decline from the $4475 high to $3935 low. However, it failed to stay above the $4200 level and the 100 hourly SMA.
As a result, it declined below $4150 and currently trading below $4000. The BTC/USD pair is currently attempting a downside break below a contracting triangle at $4030 on the hourly chart. It is another bearish signal, and if there is a close below $4000, it may result in more declines towards $3800. On the downside, the next major support sits at $3800. Below $3800, there can be a change in trend for BTC towards $3500.
On the upside, the broken support at $4080 is a short term resistance. The most important resistance for buyers is near $4200 and the 100 hourly simple moving average. Playing out range moves in the short term below $4200 can be considered.
Looking at the technical indicators:
Hourly MACD – The MACD is moving into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is heading lower and remains well below the 50 level.
Major Support Level – $4000
Major Resistance Level – $4200
Charts courtesy – SimpleFX