Key Points
- Bitcoin price declined further and broke the $3,550 and $3,420 support levels against the US Dollar.
- There is a major bearish trend line formed with resistance at $3,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price is likely to decline further and it may even test the $3,000 level in the near term.
Bitcoin price declined heavily below $3,550 against the US Dollar. BTC/USD remains in a downtrend and it could even trade towards $3,000 or $2,800.
Bitcoin Price Analysis
After forming a short term support near $3,550, there was a tiny recovery in bitcoin price against the US Dollar. The BTC/USD pair traded above the $3,750 level, but upsides were capped near the $3,845 level. Finally, there was a fresh decline and the price traded below the $3,550 and $3,420 support levels. It is now trading well below the $3,750 level and the 100 hourly simple moving average.
A new multi month low was formed at $3,288 and the price is currently consolidating losses. An initial resistance is the 23.6% Fib retracement level of the last drop from the $3,849 high to $3,288 low. However, there are many resistances on the upside near $3,550 and $3,555. The previous support near $3,550 is a major hurdle. It coincides with the 50% Fib retracement level of the last drop from the $3,849 high to $3,288 low. Moreover, there is a major bearish trend line formed with resistance at $3,700 on the hourly chart of the BTC/USD pair.
Looking at the chart, bitcoin price is clearly placed in a nasty downtrend below $3,550. As long as it is trading below $3,750, there could be more losses. The next stop for sellers below $3,250 may be $3,000 or even $2,800.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slowly reducing its bearish slope.
Hourly RSI (Relative Strength Index) – The RSI is moving higher towards the 40 level.
Major Support Level – $3,250
Major Resistance Level – $3,550
