Bitcoin price is under pressure below the $3,530 resistance zone against the US Dollar. BTC/USD could slide sharply below $3,100 and $3,000 in the near term.
- Bitcoin price remains in a major downtrend below the $3,530 pivot level.
- BTC/USD is following a crucial bearish trend line with resistance at $3,430 on the 4-hours chart.
- BTC price is likely to decline heavily once there is a break below the $3,205 swing low.
Bitcoin Price Analysis
After forming a low near the $3,205 low, bitcoin price started an upside correction. BTC/USD corrected above the $3,400 and $3,560 resistance levels, with a positive angle, but gains were contained above $3,600.
The 4-hours chart of BTC/USD indicates that the price failed to gain momentum above the $3,630 level and it remained well below the 50 simple moving average (4-hours).
More importantly, the price failed to clear a crucial bearish trend line with current resistance at $3,430 on the same chart. The price formed a top near $3,633 and later it started a fresh downside move. It declined below the $3,530 pivot level and the $3,500 support level.
There was also a break below the 50% Fib retracement level of the last rebound from the $3,205 low to $3,633 high. The current price action is very bearish below $3,500 and it seems like the price may continue to slide in the near term.
An initial support is near the $3,306 level, which is the 76.4% Fib retracement level of the last rebound from the $3,205 low to $3,633 high. If there is a break below the $3,306 level, the price will most likely break the $3,205 swing low.
Once there is a break below the $3,205 low, the price could decline sharply below $3,100 and $3,000. The next stop for buyers could be the 1.618 Fib extension level of the last rebound from the $3,205 low to $3,633 high at $2,941.
Overall, bitcoin price may continue to slide towards $3,205 or $3,000 unless BTC buyers push the price above the $3,530 resistance level.
Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. Tou can follow him on twitter at @aayushJS or reach out to him at aayush[at]coingape.com