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.