Key Points
- Bitcoin price failed to correct higher above the $3,840 and $3,900 levels against the US Dollar.
- There is a major bearish trend line in place with resistance at $3,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price is currently at a risk of a downside break below the $3,660 and $3,600 support levels.
Bitcoin price is consolidating losses above the $3,600 support against the US Dollar. BTC may continue to struggle and it could even break the $3,500 pivot area.
Bitcoin Price Analysis
The past few hours were mostly bearish for bitcoin price below the $3,840 resistance against the US Dollar. The BTC/USD pair started an upside correction after trading as low as $3,669. It moved above the $3,700 and $3,740 levels. There was even a break above the 23.6% Fib retracement level of the recent drop from the $4,250 swing high to $3,669 low. However, the upside move was capped by the $3,840 and $3,850 resistances.
Moreover, there is a major bearish trend line in place with resistance at $3,800 on the hourly chart of the BTC/USD pair. The pair needs to break the trend line and the $3,840 resistance to gain momentum. The next resistance is near the $3,960 level. It represents the 50% Fib retracement level of the recent drop from the $4,250 swing high to $3,669 low. An intermediate resistance is near the $3,900 level and the 100 hourly simple moving average.
Looking at the chart, bitcoin price may continue to move down if there is no break above $3,900. On the downside, a break below the $3,660 and $3,600 support levels could accelerate losses. The next key support is at $3,500, which may act as a decent buy zone.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI moved back below 50 level with a bearish angle.
Major Support Level – $3,660
Major Resistance Level – $3,900