Bitcoin price failed to settle above the $4,200 hurdle against the US Dollar. BTC/USD declined and it remains at a risk of a major downside break below $3,650 and $3,550.
- Bitcoin price traded as high as $4,195 and later declined below $4,000.
- BTC broke a crucial bullish trend line with support $3,925 on the 2-hours chart.
- The price declined below $3,780 and it remains at risk of more losses.
Bitcoin Price Analysis
After a sharp upward move, bitcoin price faced sellers near the $4,195 level against the US Dollar. BTC/USD started a downside move and broke the $4,040 and $3,908 support levels to enter a bearish zone.
The 2-hours chart indicates that the price even broke the $3,780 support and the 100 simple moving average (2-hours). The decline was such that sellers managed to outpace buyers below the $4,000 support area.
Moreover, the price cleared a crucial bullish trend line with support $3,925 on the same chart. The price tested a major support area near $3,650, which acted as a strong buy zone for buyers.
A short-term recovery is underway and the price moved above the $3,800 level and the 23.6% Fib retracement level of the recent decline from the $4,195 high to $3,652 low. However, the previous support near the $3,820 level and the 100 SMA is acting as a solid resistance.
If there is a break above the $3,820 resistance, the next barrier could be the 50% Fib retracement level of the recent decline from the $4,195 high to $3,652 low at $3,924.
Only a 2-hour close above $3,924 and $4,040 may push the price back in a positive zone. On the other hand, initial support is near the $3,650 level, below which the main support is at $3,550. Should Ether decline below the $3,550 level, the price may enter a medium-term downtrend.
Overall, bitcoin price seems to be struggling to recover above $3,820 and the 100 SMA. If BTC continues to struggle, there could be a break below the $3,650 and $3,550 supports.