- Bitcoin price failed to hold the key $3,860 support and traded lower against the US Dollar.
- The price even broke the $3,840 support and settled well below the 100 hourly simple moving average.
- There was a break below a crucial ascending channel with support at $3,830 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could accelerate declines if there is a break below the $3,800 support area.
Bitcoin price is under pressure below the $3,860 support against the US Dollar. BTC could reverse gains if sellers succeed in pushing the price below the $3,800 and $3,780 supports.
Bitcoin Price Analysis (BTC to USD)
After trading to a new monthly high at $3,940, bitcoin price started a fresh decline against the US Dollar. The BTC/USD pair traded below the $3,900 and $3,860 supports to enter a short term bearish zone. There was also a close below the $3,860 support and the 100 hourly simple moving average. The price traded below the 61.8% Fib retracement level of the last leg from the $3,761 low to $3,940 swing high. It opened the doors for more losses below the $3,840 support.
More importantly, there was a break below a crucial ascending channel with support at $3,830 on the hourly chart of the BTC/USD pair. The pair extended losses and tested the $3,800 support level. At the moment, it is consolidating losses above the $3,800 support. An initial resistance is near the 23.6% Fib retracement level of the recent decline from the $3,911 high to $3,801 low. However, the main resistance is near the broken channel and the $3,860 level. Besides, the 50% Fib retracement level of the recent decline from the $3,911 high to $3,801 low is also near $3,856.
Therefore, if there is an upside correction, the price is likely to face a strong resistance near the $3,860 level. The next key resistance is near the $3,880 level and the 100 hourly SMA. On the downside, a break below the $3,800 support could open the doors for more losses. The next immediate support is at $3,780, below which the price could tumble towards the $3,700 level.
Looking at the chart, bitcoin price is slowly moving into the bearish zone, with a close below $3,860. If the price fails to move above $3,880 and $3,900, it is likely to extend losses below the $3,805 support in the near term.
Hourly MACD – The MACD is placed in the bearish zone, with a negative bias.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD moved below the 40 level, with a bearish angle.
Major Support Levels – $3,800 followed by $3,780.
Major Resistance Levels – $3,860, $3,880 and $3,900.
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* First published on newsbtc.com