Bitcoin Price Analysis: New Lows In BTC/USD After Support Break

Bitcoin Price Analysis
Chart sourced by TradingView, Bitstamp

Bitcoin Price Analysis: New Lows In BTC/USD After Support Break

Bitcoin price declined further below the $5,560 support level against the US Dollar. BTC/USD traded to a new yearly low at $5,254 and it remains at a risk of more declines.

Important Points:

  • Bitcoin price declined sharply below the $5,560 and $5,420 support levels.
  • BTC/USD failed to clear a connecting bearish trend line with resistance at $5,700 on the 2-hours chart.
  • BTC might correct a few points, but later it could decline below $5,250 in the short term.

Bitcoin Price Analysis

After a major drop towards the $5,550 level, bitcoin price started consolidating losses against the US Dollar. BTC/USD corrected a few points above the $5,650 level, but it failed to gain bullish momentum.

The 2-hour chart indicates that the price traded towards the $5,750 resistance where sellers emerged. There was no proper close above the $5,750 level and the price remained well below the 100 simple moving average (2-hours).

Bitcoin Price Analysis
Chart sourced by TradingView, Bitstamp

More importantly, the price failed to clear a connecting bearish trend line with resistance at $5,700 on the same chart. As a result, there was a fresh decline below the $5,560 swing low and the $5,420 support area.

The decline was such that the price even broke the $5,300 support and traded close to the $5,250 support. A new yearly low was formed at $5,254 and the price is currently consolidating losses.

An initial resistance is the 23.6% Fib retracement level of the last decline from the $5,751 high to $5,251 low. However, the most important resistance for buyers is near the $5,560 level, which was a support earlier and now it could prevent gains.

Besides, the 50% Fib retracement level of the last decline from the $5,751 high to $5,251 low is near $5,502. Therefore, any major upside correction from the current levels will most likely face sellers near the $5,500 and $5,560 levels.

On the other hand, if the price continues to move down, it may soon break the $5,250 support. The next major support for bitcoin buyers is near the $5,120 level, below which the price could test $5,050.

Summary
Bitcoin Price Analysis: New Lows In BTC/USD After Support Break
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Bitcoin Price Analysis: New Lows In BTC/USD After Support Break
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Bitcoin price declined further below the $5,560 support level against the US Dollar. BTC/USD traded to a new yearly low at $5,254 and it remains at a risk of more declines.
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Coingape
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Author: Latika Mehrotra

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]

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Latika Mehrotra 71 Articles

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]

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