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.
Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. Tou can follow him on twitter at @aayushJS or reach out to him at aayush[at]coingape.com