Bitcoin Price Analysis: BTC/USD Primed For More Declines


bitcoin price analysis

Bitcoin Price Analysis: BTC/USD Primed For More Declines

Bitcoin price formed a short-term top near $4,275 and declined recently against the US Dollar. BTC/USD is currently at a risk of a downside break below $3,980 and $3,900.

Important Points:

    • Bitcoin price struggled to move past $4,300 recently and declined.
    • BTC/USD is testing a key contracting triangle pattern with support at $4,000 on the 2-hours chart.
    • BTC price is clearly at a risk of a downside break below $4,000 and $3,900 in the short term.

Bitcoin Price Analysis

There was a downside break recently from the $4,454 swing high in bitcoin price against the US Dollar. BTC/USD declined below the $4,100 support and tested the $3,980-4,000 support area.

The 2-hr chart indicates that the price bounced back later after forming a support above the $3,980 level. There was a break above the $4,100 and $4,200 resistance levels, but the price struggled to clear the $4,275-4,300 resistance zone.

btc/usd price analysis

Chart sourced by TradingView, Binance

A swing high was formed at $4,275 and later the price declined. There was a break below the 50% Fib retracement level of the upward move from the $3,695 swing low to $4,450 swing high.

The price even traded below the $4,100 support and the 100 simple moving average (2-hours). More importantly, the price is now testing a key contracting triangle pattern with support at $4,000 on the same chart.

A close below the $4,000 support and the 61.8% Fib retracement level of the upward move from the $3,695 swing low to $4,450 swing high is needed for sellers to push the price further lower.

The next main support on the downside is at $3,880, below which the price could test the $3,600 support area. On the upside, an initial resistance is at $4,075 and the 100 simple moving average (2-hours).

Therefore, to rebound in a positive way toward $4,500, bitcoin price must initially break the $4,075 resistance. Above the $4,100 resistance, the key barrier for BTC buyers is near the $4,275 swing high, above which the price is likely to accelerate above $4,400 in the near term.

Disclaimer The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Author: Achal Arya

I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.

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Achal Arya 204 Articles

I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.

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