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.
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Passionate about technology and science. Pursuing Doctorate in the field of Data Mining, Professor by profession and loves writing interesting articles about Cryptocurrencies, bitcoin, Ethereum, ripple, Forex and commodities. Reach out to her [email protected]