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.
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]