Bitcoin price remained in a negative zone and traded below the $3,650 support level against the US Dollar. BTC/USD could extend the current decline toward the $3,480 or $3,320 levels.
- Bitcoin price failed to recover above the $3,810 resistance and declined recently.
- BTC is following a declining channel with resistance at $3,690 on the 2-hours chart.
- The price may correct higher, but later it is likely to trade below the $3,560 and $3,480 supports.
Bitcoin Price Analysis
Recently, bitcoin price started a solid downward move below the $3,860 level against the US Dollar. Later, BTC/USD failed to recover above the same level and extend the decline below the $3,690 and $3,650 support levels.
The 2-hours chart indicates that the price surpassed the $3,645 support and moved further into the bearish zone. A new low was formed near the $3,550 level and the price settled well below the 100 simple moving average (2-hours).
At the moment, the price is consolidating losses and it may correct higher towards the $3,650 level. Initial resistance is near the 23.6% Fib retracement level of the recent slide from the $4,190 swing high to $3,550 swing low.
More importantly, there is a declining channel in place with resistance at $3,690 on the same chart. Should there be a break above the channel resistance and the $3,695 resistance, there could be a decent recovery.
The next resistance is near the $3,865 level and the 50% Fib retracement level of the recent slide from the $4,190 swing high to $3,550 swing low. Moreover, the 100 SMA is also positioned near the $3,870 level, which is a solid resistance.
On the downside, initial support is near the $3,540 level, below which there is a risk of a major decline below the $3,500 support. The next major support is at $3,350 where buyers are likely to emerge.
Overall, bitcoin price has moved into a bearish zone below the $3,850 level. If there is a break below the $3,540 level with a close, then there could be more losses in BTC in the near term.