HomeBitcoin NewsBitcoin Price Analysis: BTC Could Extend Losses Before Higher

Bitcoin Price Analysis: BTC Could Extend Losses Before Higher

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Key Points

  • Bitcoin price traded above the $4,200 resistance before correcting lower against the US Dollar.
  • There was a break below a key bullish trend line with support at $3,980 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The price may extend the current correction or consolidate before moving back above $4,050.

Bitcoin price moved back in a short term bearish zone below $4,050 against the US Dollar. BTC may dip a few more points before moving back above $4,000 and $4,050.

Bitcoin Price Analysis

Recently, we saw a nice upward move above the $4,100 resistance in bitcoin price against the US Dollar. The BTC/USD pair even broke the $4,200 and settled above the 55 simple moving average (4-hours). The price traded as high as $4,236 and later started a sharp downside correction. The price declined below $4,200 and $4,050. Moreover, there was a break below the 23.6% Fib retracement level of the last leg from the $3,145 low to $4,236 high.

Besides, there was a break below a key bullish trend line with support at $3,980 on the 4-hours chart of the BTC/USD pair. The pair tested the $3,690-$3,700 zone where buyers emerged. They defended the 50% Fib retracement level of the last leg from the $3,145 low to $4,236 high. At the outset, the price is trading nicely above the $3,690-$3,700 zone and it could move higher. However, the current price action indicates that the price may dip a few more points near $3,700 before more gains. On the upside, the price must break the $4,050 pivot level to start a fresh rally.

Bitcoin Price Analysis BTC Charr

Looking at the chart, bitcoin price remains nicely supported above $3,690-$3,700 zone. Having said that, it won’t be easy for buyers to clear the $4,050 resistance zone.

Looking at the technical indicators:

4-hour MACD – The MACD for BTC/USD is placed in the bearish zone.

4-hour RSI (Relative Strength Index) – The RSI is currently moving above the 50 level.

Key Support Level – $3,690

Key Resistance Level – $4,050

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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