Bitcoin price failed near the $4,250 barrier after a solid upward move against the US Dollar. BTC/USD declined heavily and broke the $4,200 and $3,880 levels.
- Bitcoin price formed a key top near the $4,250 level and declined recently below $4,050.
- BTC/USD moved down and broke a major triangle with support at $4,030 on the 4-hours chart.
- BTC price is under pressure and it could correct further lower towards the $3,580 and $3,400 levels.
Bitcoin Price Analysis
This past week, there was a solid upward move above the $3,850 and $4,030 resistances in bitcoin price. BTC/USD gained momentum and broke the $4,150 resistance zone, opening the doors for a push above the $4,200 level.
The 4-hours chart of BTC/USD indicates that the price failed to clear the $4,250 resistance area and topped near the $4,237 level. The price declined sharply below the $4,030 support and also cleared the $3,850 support.
There was also a break below the 50% Fib retracement level of the last upward move from the $3,433 low to $4,237 high. More importantly, there was a clear break below a major triangle with support at $4,030 on the same chart.
BTC is currently trading near the $3,760 level and the 50 simple moving average (4-hours). The 61.8% Fib retracement level of the last upward move from the $3,433 low to $4,237 high is also acting as a support.
Should the price continue to move down further below $3,700, the next stop could be near the $3,585 support area. Further below $3,585, the price could continue to move down towards the $3,400 support area.
On the upside, initial resistance is near the $3,900 level, above which the price is likely to face a lot of hurdles near the $4,000 level. A successful close above the $4,000 barrier could open the doors for more gains towards the $4,200 level.
The overall price action is indicating a corrective move below the $3,585 support, therefore, bitcoin price could decline towards $3,585 or $3,400 before a fresh upward move.