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

BTC Price
BTC Price

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

Bitcoin price failed to break the $4,450 resistance and declined against the US Dollar. BTC/USD is back below the $4,220 support and it could slide towards $3,900 or even $3,500.

Important Points:

    • Bitcoin price failed to break the $4,450 resistance zone and declined recently.
    • BTC/USD declined below a short-term triangle pattern with support at $4,224 on the 2-hours chart.
    • BTC price is under pressure below $4,200 and it could continue to decline in the near term.

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.

btc/usd price chart

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.

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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 213 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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