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.
- 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.
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.
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.