Bitcoin price found a strong resistance near the $4,190 level and later declined against the US Dollar.

Bitcoin price nosedived below the $3,900 support against the US Dollar. BTC bears are in control and it seems like recoveries could face a strong resistance near $3,900 and $4,000.

  • The price declined sharply and broke the $4,000 and $3,900 support levels.
  • There was a break below a major bullish trend line with support at $3,940 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair traded towards the $3,600 support level and it is currently correcting higher

Bitcoin Price Analysis

In the weekly analysis, we saw a solid upward move above the $4,000 resistance in bitcoin price against the US Dollar. The BTC/USD pair even broke the $4,100 resistance area. It traded to a new monthly high at $4,189, where sellers emerged. It seems like the price was rejected near the $4,190 resistance. As a result, there was a sharp bearish reaction below the $4,150 and $4,100 support levels. Sellers gained pace and pushed the price below the key $4,000 support level.

During the decline, there was a break below a major bullish trend line with support at $3,940 on the hourly chart of the BTC/USD pair. The pair even settled below the $3,900 support and the 100 hourly simple moving average. Finally, there was a break below the $3,700 support and the price traded towards $3,600. A new weekly low was formed at $3,624 and later the price corrected higher. It broke the 23.6% Fib retracement level of the recent decline from the $4,189 high to $3,624 low.

The current price action is bearish and it seems like upsides are likely to be capped near $3,860. However, the main resistance is near the $3,900 level. Besides, the 50% Fib retracement level of the recent decline from the $4,189 high to $3,624 low is near the $3,910 level. Above $3,900, the price could face resistance near $3,950 and the 100 hourly SMA. More importantly, a break above the main $4,000 hurdle won’t be easy for buyers.

Looking at the chart, bitcoin price made a sharp U-turn below the $4,000 and $3,900 support levels. It could correct higher in the short term, but the previous supports at $3,860 and $3,900 might prevent gains. On the downside, an initial support is at $3,680, below which the price may decline below $3,600.

Technical indicators

Hourly MACD – The MACD could move back in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently recovering from 20 and it could test 45.

Major Support Level – $3,680 followed by $3,600.

Major Resistance Level – $3,860, $3,900 and 3,950.

The views and opinions expressed in the article Bitcoin Price Watch: BTC Breakdown Might Be The Real Deal do not reflect that of 48coins.com nor of its originally published source. Article does not constitute financial advice. Proceed with caution and always do your own research.

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