Bitcoin price declined below the $4,020 and $3,860 supports against the US Dollar. BTC/USD is currently correcting, but it remains in a downtrend as long as it is below $4,500.
- Bitcoin price declined heavily and traded below the $4,020 and $3,860 support levels.
- BTC/USD is still following a major declining channel with resistance at $4,140 on the 2-hours chart.
- BTC price remains at a risk of more losses if it remains below $4,140 and $4,500.
Bitcoin Technical Analysis
There were continuous declines in bitcoin price from the $5,700 swing high against the US Dollar. BTC/USD declined steadily and broke many supports, including $4,800, $4,400, $4,020 and $3,860.
The 2-hour chart indicates that the price even broke the $3,750 support and traded towards the $3,650 level. A new yearly low was formed at $3,651 and later the price started an upside correction above the $3,860 level.
The price traded above the $4,020 resistance (the previous support), but it is still well below the 100 simple moving average (2-hours). Buyers pushed the price above the 50% Fib retracement level of the last decline from the $4,538 high to $3,651 low.
However, the upside move was protected by the $4,240 level, which was a support earlier and now it is acting as a solid hurdle for buyers. More importantly, there is a major declining channel in place with resistance at $4,140 on the same chart.
Therefore, a successful break above the channel resistance and $4,240 could spark more gains. Besides, the price must break the 76.4% Fib retracement level of the last decline from the $4,538 high to $3,651 low at $4,328 to move into a positive zone.
On the other hand, if the price fails to surpass the channel resistance, $4,240, and $4,500, there could be a fresh decline towards the $3,860 and $3,650 levels in the near term.
Overall, bitcoin price remains in a significant downtrend and if buyers fail to push the price above $4,240, sellers are likely to regain control and lead BTC towards the $3,650 level or even lower.
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]