- Bitcoin price declined heavily after it failed to break the $4,200 resistance against the US Dollar.
- The price moved below the $4,000 support and settled below the 55 simple moving average (4-hours).
- There is a short-term contracting triangle formed with resistance at $3,840 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair is likely to make the next move either above $3,875 or below $3,710 in the near term.
Bitcoin price declined below $4,000 and tested the $3,710 support against the US Dollar. BTC is approaching a crucial juncture and it could either break $3,875 or decline once again.
Bitcoin Price Analysis
This past week, we saw a strong rally above the $3,710 resistance in bitcoin price against the US Dollar. The BTC/USD pair traded above the $3,900 and $4,000 resistance levels. There was even a close above the $3,900 level and the 55 simple moving average (4-hours). However, sellers fought near the $4,200 resistance and pushed the price lower. A swing high was formed at $4,192 and later the price declined below the $4,000 support.
Moreover, there was a break below the 50% Fib retracement level of the last wave from the $3,564 low to $4,192 high. The decline was strong as the price broke the $3,875 support and the 55 simple moving average (4-hours). The price tested the $3,700-3,710 support area, where buyers emerged. Besides, the 76.4% Fib retracement level of the last wave from the $3,564 low to $4,192 high also acted as a support. Later, the pair started consolidating losses and corrected above the $3,800 level.
At the outset, there is a short-term contracting triangle formed with resistance at $3,840 on the 4-hours chart of the BTC/USD pair. The pair seems to be preparing for the next break either above $3,875 or below $3,710 in the near term. If there is an upside break above $3,840 and $3,875, the price may resume its upward move. On the other hand, if there is a downside break, the price could slide below the $3,710 support.
Looking at the chart, bitcoin price seems to be approaching a crucial juncture it could either break $3,875 or decline once again. The current price action is slightly positive, but a break above the $3,875 resistance won’t be easy. More importantly, a close above the 55 SMA is needed for an upside accelerate towards $4,000.
Technical indicators
4 hour MACD – The MACD is slowly moving into the bullish zone, with a few bearish signs.
4 hour RSI (Relative Strength Index) – The RSI is currently flat and it is well below the 50 level.
Key Support Levels – $3,760 and 3,710.
Key Resistance Levels – $3,875 and 3,900.
