Bitcoin Price Analysis: BTC/USD Resumes Decline, Could Test $3,500

30 Nov, 2018 Updated 17 May, 2024

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

After a decent recovery above the $4,000 level, bitcoin price traded close to the $4,450 resistance against the US Dollar. BTC/USD failed to break the $4,450 resistance zone and later corrected lower.

The 2-hour chart indicates that the price traded as high as $4,454 and later faced a rise in selling pressure. Buyers fought hard above the $4,250 level, but sellers finally had the upper hand and pushed the price below the $4,200 support level.

Chart sourced by TradingView, Binance

The price gained traded below the $4,100 support and the 100 simple moving average (2-hours). Moreover, there was a break below the 50% Fib retracement level of the last wave from the $3,694 low to $4,454 high.

Moreover, the price declined below a short-term triangle pattern with support at $4,224 on the same chart. It opened the doors for more losses and the price tested the $4,000 support level.

Currently, the price is trading just above the 61.8% Fib retracement level of the last wave from the $3,694 low to $4,454 high. If there is a close below the $4,000 support, the price could slide sharply towards the $3,800 support level.

More importantly, if selling pressure grows, the price could even break the $3,600 support zone and trade towards the $3,500 level, which is close to the 1.236 Fib extension level of the last wave from the $3,694 low to $4,454 high.

Overall, bitcoin price is clearly struggling below the $4,200 level and the 100 SMA. It seems like BTC/USD is back in a downtrend and it could extend losses towards the $3,800, $3,600 or $3,500 level.

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.