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.