Bitcoin price remained in a downtrend below $3,390 and declined below $3,300 against the US Dollar. BTC/USD could accelerate losses towards $3,120 or $3,020.
- Bitcoin price is currently trading below the $3,390 and $3,440 resistance levels.
- BTC/USD is following a major bearish trend line with resistance at $3,360 on the 2-hours chart.
- BTC price may continue to decline and it could test $3,120 or $3,020.
Bitcoin Price Analysis
There is a clear declining pattern from the $3,660 swing high in bitcoin price against the US Dollar. BTC/USD traded lower and formed a couple of swing highs near the $3,500 and $3,440 levels, and it recently declined below $3,40.
The 2-hour chart indicates that the price topped recently near the $3,480 and $3,500 resistance levels. More importantly, there was a break below the 76.4% Fib retracement level of the last leg from the $3,223 low to $3,660 high.
The price recently broke the $3,300 support level and it seems like there could be more losses below the $3,240 level in the near term. An initial support is near the $3,223 low, below which the price may slide towards the $3,120 level.
The $3,120 level represents the 1.236 Fib extension level of the last leg from the $3,223 low to $3,660 high. On the upside, there is a major resistance is around the $3,380 level.
There is also a major bearish trend line with resistance at $3,360 on the same chart. Therefore, a break above the $3,360 and $3,390 resistance levels is needed for a successful upward move. More importantly, there is a crucial barrier near $3,440 and the 100 simple moving average (2-hours).
Should there be a successful close above $3,440 and the 100 SMA, the price may move into a positive zone. On the flip side, the price could accelerate losses below the $3,223 low towards the $3,120 or $3,020 level.
Overall, bitcoin price remains at a major risk of a breakdown below $3,223. The MACD is gaining pace, which is a strong bearish sign below $3,360 and $3,390.
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