Key Points
- Bitcoin price struggled to break the $4,120 resistance area and declined against the US Dollar.
- Yesterday’s highlighted crucial bearish trend line is active with resistance at $3,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price is likely to struggle to clear the $3,900 and $4,000 resistance levels in the near term.
Bitcoin price remained below the $4,000 barrier against the US Dollar. BTC/USD could decline below $3,600 if it fails to move above the $4,000 barrier.
Bitcoin Price Analysis
Yesterday, we saw a short term upside move above $3,600 and $3,800 in bitcoin price against the US Dollar. The BTC/USD pair traded above the $4,000 barrier as well, but it failed to hold gains. The price was rejected near the $4,100 barrier and the 100 hourly simple moving average. It seems like buyers struggled to gain strength above $4,000, resulting in a bearish reaction.
A high was formed at $4,126 and later the price declined below $4,000 and $3,900. The decline was such that the price even broke the $3,580 support and traded as low as $3,513. Later, it corrected above $3,600 and the 23.6% Fib retracement level of the recent drop from the $4,126 high to $3,513 low. On the upside, there are many hurdles for buyers near the $3,800 and $3,900 levels. Moreover, yesterday’s highlighted crucial bearish trend line is active with resistance at $3,900 on the hourly chart of the BTC/USD pair. The 50% Fib retracement level of the recent drop from the $4,126 high to $3,513 low is also near $3,819.
Looking at the chart, bitcoin price is clearly facing an uphill task near the $3,900 and $4,000 levels. If there is no convincing break above $4,000, the price could decline towards the $3,600 and $3,500 levels.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slightly placed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently just near the 50 level.
Major Support Level – $3,600
Major Resistance Level – $4,000