Bitcoin price extended declines and traded to new lows below $4,550 against the US Dollar. BTC/USD is currently under pressure below $5,000 and the decrease in Bitcoin Hash Rate could ignite more losses.
- Bitcoin price tumbled below the $5,060 and $4,860 support levels.
- BTC/USD is currently following a major bearish trend line with resistance at $4,700 on the 2-hours chart.
- Bitcoin’s Hash Rate dropped more than 12% recently, adding fuel to the fire.
Bitcoin Price Analysis
After a drop below the $5,060 support, bitcoin price found a decent buying interest near the $4,860 level against the US Dollar. BTC/USD corrected a few points, but it failed to hold gains and declined below the key $4,860 support.
The 2-hour chart indicates that the price dropped heavily below the $5,060 and $4,860 support levels. It even declined below the $4,550 support and traded to a new multi-month low around the $4,400 level.
The RSI on the 2-hour chart has reached the 10 level, suggesting that the price is facing a solid selling interest below $4,860. However, there are chances of a short-term bounce from the recent low of $4,407.
An initial resistance is near the 23.6% Fib retracement level of the recent decline from the $5,751 high to $4,407 low. Moreover, there is a major bearish trend line in place with resistance at $4,700 on the same chart to act as a barrier for buyers.
If there is a break above the trend line and $4,700, the price could test the previous support at $4,860, which is likely to act as a crucial resistance. Above $4,860, the main resistance is near $5,060 and the 50% Fib retracement level of the recent decline from the $5,751 high to $4,407 low.
Therefore, if there is an upside recovery, the price could face a lot of hurdles near $4,700, $4,860 and $5,060. On the downside, the recent low at $4,407 is a short-term support. If there is a break below $4,400, then bitcoin price will most likely nosedive towards the $4,000 handle in the near term.
Adding fuel to the fire, if Hash Rate continues to plunge, it could increase bearish pressure on bitcoin considering miners might be forced to turn off rigs or switch to a different network to avoid losses.