Bitcoin price struggled to break the $4,400-4,440 resistance and declined against the US Dollar.
There was a break below yesterday’s bullish trend line with support at $4,220 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The price is currently at a risk of more losses below the $4,100 and $4,080 support levels.
Bitcoin price formed a short term top near the $4,440 level and declined against the US Dollar. BTC/USD is likely to correct lower towards the $4,000 support in the near term.
Bitcoin Price Analysis
Yesterday, there was an upside extension above the $4,300 and $4,350 levels in bitcoin price against the US Dollar. The BTC/USD pair even broke the $4,400 high and traded to a new weekly high at $4,437. Later, there was downside correction and the price declined below the $4,300 and $4,250 support levels. The price even broke the 23.6% Fib retracement level of the last leg from the $3,560 swing low to $4,437 high.
More importantly, there was a break below yesterday’s bullish trend line with support at $4,220 on the hourly chart of the BTC/USD pair. The pair traded below the $4,200 level and it is currently trading near $4,150. An immediate support is near the $4,080 level, which was a resistance earlier. Below $4,080, the price could test the $4,000 support area. The 50% Fib retracement level of the last leg from the $3,560 swing low to $4,437 high is also near $4,000. Finally, the 100 hourly simple moving average is near the $3,980 level to act as a solid support. Below the 100 hourly SMA, the price could move back in a bearish zone below $3,800.
Looking at the chart, bitcoin price is currently at a risk of more losses towards the $4,080 and $4,000 supports. On the upside, resistances are at $4,300 and $4,400.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is now back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently below the 50 level.
Major Support Level – $4,000
Major Resistance Level – $4,300
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