Bitcoin price fell further and declined below the $3,620 support level against the US Dollar. BTC/USD settled below $3,400 and it seems like it could slide further below $3,000.
- Bitcoin price traded further lower below the $3,705 and $3,620 support levels.
- BTC/USD broke a major declining channel with support at $3,560 on the 2-hours chart.
- BTC price remains in a major downtrend and it could tumble further below $3,000.
Bitcoin Price Analysis
After a failure to break the $3,860 resistance, bitcoin price started a fresh decline against the US Dollar. BTC/USD broke down and traded below the $3,705, $3,660 and $3,520 support levels.
The 2-hour chart indicates that the price declined heavily from the $3,908 swing high and declined below the key $3,620 support. It opened the doors for more losses and the price settled below the $3,400 level and the 100 simple moving average (2-hours).
Chart sourced by TradingView, Binance
During the decline, the price broke a major declining channel with support at $3,560 on the same chart. Sellers pushed the price towards the $3,300 level and a new yearly low was formed near $3,340. The price is currently consolidating above $3,300 with a bearish angle.
An initial resistance is near the $3,480 level and the 23.6% Fibonacci retracement level of the last decline from the $3,908 high to $3,344 low. If there are further gains, the price is likely to visit the $3,600 and $3,620 resistance levels.
The $3,620 level is crucial since it coincides with the 50% Fibonacci retracement level of the last decline from the $3,908 high to $3,344 low. The overall price action is very bearish below the $3,620 level and the $3,750 pivot level.
Therefore, there are high chances of more declines below the $3,344 low and the $3,300 support level. The next major support is near $3,000, below which the price may even tumble below the $2,880 level in the near term.
Overall, bitcoin buyers might continue to struggle as long as BTC is trading below the $3,620, $3,750 and $3,880 resistance levels.