Bitcoin price fell significantly after it broke the $3,880 support against the US Dollar. BTC/USD tested the $3,535 support and it remains at risk of a break towards $3,200.
- Bitcoin price dived recently below the $3,880 and $3,680 support levels.
- BTC broke a major bullish trend line with support at $3,840 on the 2-hours chart.
- The price is under pressure and it may soon break the $3,535 support to test $3,200.
Bitcoin Price Analysis
There was a solid rejection noted near the $4,075 level in bitcoin price against the US Dollar. The BTC/USD pair started a significant decline and broke the $3,880 and $3,680 support levels to move into a bearish zone.
The 2-hour chart indicates that the price topped at $4,073, consolidated for a few hours above the $3,920 level and later broke the $3,880 support plus the 100 simple moving average (2-hours) to start a significant downward move.
During the decline, the price broke a major bullish trend line with support at $3,840 on the same chart. As a result, sellers took control and pushed the price below the $3,680 and $3,600 support levels.
The price tested the previous swing low and support at near $3,535 and later started consolidating losses. Initial resistance is near the 23.6% Fib retracement level of the recent decline from the $4,073 high to $3,537 low.
A break above the $3,650 and $3,665 resistance levels won’t be easy. However, if buyers succeed in pushing the price above the $3,665 resistance, there could be an extended recovery towards the $3,800 level.
The main resistance is at $3,805 and the 50% Fib retracement level of the recent decline from the $4,073 high to $3,537 low. On the other hand, once the current correction is complete, the price may attempt to surpass the $3,535 support area.
Overall, bitcoin is clearly bleeding below $3,665 and $3,805 and if it breaks the $3,535 support, the next stop could be $3,200. On the upside, the main hurdles for BTC are at $3,665 and $3,805 in the near term.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
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]