Bitcoin Price Analysis: BTC/USD Primed For More Declines

03 Dec, 2018 Updated 05 May, 2022

By Achal Arya

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Achal Arya is a digital product designer and an entrepreneur. He did his masters degree in design from IIT Hyderabad and has a bachelors degree in Computer Science. He works in the Web3 domain and manages new developments at CoinGape. Follow him on X at @arya_achal or reach him at achal[at]coingape.com.

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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.

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.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.