Bitcoin price failed once again near the $3,880 resistance against the US Dollar. BTC/USD corrected lower recently and tested the $3,740 support.
- Bitcoin price faced a strong resistance near $3,880 and failed on many occasions.
- BTC is placed nicely above a major bullish trend line with support at $3,730 on the 2-hours chart.
- The price may bounce back again and it could break the $3,880 resistance in the near term.
Bitcoin Price Analysis, Jan 4th, 2019
Recently, there was an upward move above the $3,800 resistance in bitcoin price against the US Dollar. However, the BTC/USD pair failed once again near a significant resistance area at $3,880 and later declined below $3,800.
The 2-hours chart indicates that the price traded as high as $3,882 and later started a downside correction. It declined below the $3,840 and $3,800 support levels to enter a short-term bearish zone.
Besides, there was a break below the 50% Fib retracement level of the recent wave from the $3,645 low to $3,882 high. However, the decline was protected by the $3,740 support area and the 100 simple moving average (2-hours).
More importantly, the 61.8% Fib retracement level of the recent wave from the $3,645 low to $3,882 high also acted as strong support. If there is a drop below the $3,740 support, the price may extend losses towards the $3,720 level and a major bullish trend line with support at $3,730 on the same chart.
A break below the trend line support and $3,720 will most likely clear the path for sellers to take control in the near term.
On the upside, initial resistance is near the $3,825 level, above which the price may climb towards the $3,880 resistance.
A proper close above the $3,880 and $3,900 resistance levels is a must for an upside acceleration in the coming sessions for bitcoin price.
Overall, the current bitcoin price action is positive above the $3,720 support. However, if Bitcoin buyers continue to struggle near the $3,880 resistance, there could be a sharp bearish reaction below the $3,700 level. Alternatively, a clear break above $3,880 might set the pace for more gains above $4,000.
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