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- Bitcoin price declined heavily and later found support near the $3,630 level against the US Dollar.
- The price recovered recently and traded above the $3,700 and $3,750 resistance levels.
- There is a short term ascending channel in place with resistance at $3,880 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to face a strong resistance near the $3,880 and $3,900 levels in the near term.
Bitcoin price started a decent recovery above $3,750 against the US Dollar. However, BTC is likely to struggle near the $3,900 resistance and it could later extend slides.
Bitcoin Price Analysis
Yesterday, we saw a nasty decline from the $4,188 swing high in bitcoin price against the US Dollar. The BTC/USD pair traded sharply lower and broke the $4,000 and $3,800 support levels. It traded close to the $3,600 level and found support near $3,630. A base was formed and later the price recovered above the $3,700 resistance. There was a break above the 23.6% Fib retracement level of the recent decline from the $4,188 high to $3,628 low.
Buyers even managed to push the price above the $3,750 and $3,800 levels. However, the previous support at $3,860 acted as a strong resistance. At the outset, there is a short term ascending channel in place with resistance at $3,880 on the hourly chart of the BTC/USD pair. The pair recently tested the channel support at $3,775 and bounced back. However, there are many hurdles on the upside, starting with $3,860. The main resistance zone is near the $3,880 and $3,900 levels.
Besides, the 50% Fib retracement level of the recent decline from the $4,188 high to $3,628 low is at $3,908 to act as a resistance. Finally, the 100 hourly simple moving average is positioned near the $3,920 level. Therefore, it seems like there is a strong resistance formed near $3,900 and the 100 hourly SMA. Only a successful close above the $3,920 level could start a fresh upward move in the near term. If not, the price could resume its slide below the $3,750 support.
Looking at the chart, bitcoin price recovered nicely from the $3,630 support. Having said that, sellers are still in control as long as the price is below $3,900 and $3,920. If there is a fresh decline, the price could revisit the $3,630 and $3,600 support levels.
Technical indicators
Hourly MACD – The MACD is about to move back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD failed to stay above the 50 level and it is currently moving lower.
Major Support Level – $3,750 followed by $3,650.
Major Resistance Level – $3,860, $3,880 and 3,900.
