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Key points
- The price of bitcoin struggled to break the resistance zone by $ 4,120 and fell against the US dollar.
- The crucial downtrend line highlighted yesterday is active with USD3,900 resistance on the BTC / USD time chart (data feed from Kraken).
- The price will likely struggle to break through resistance levels of $ 3,900 and $ 4,000 in the near term.
The price of bitcoin remained below the $ 4,000 barrier against the US dollar. The BTC / USD could fall below $ 3,600 if it does not exceed the $ 4,000 mark.
Bitcoin Price Analysis
Yesterday, we saw a short-term upward movement above $ 3,600 and $ 3,800 in bitcoins against the US dollar. The BTC / USD pair also traded above the $ 4,000 mark, but failed to record gains. The price was rejected near the $ 4,100 barrier and the single 100-hour moving average. It appears that buyers struggled to strengthen above USD 4,000, which caused a downward reaction.
A maximum was formed at $ 4,126 and later, the price fell between $ 4,000 and $ 3,900. The drop was such that the price even exceeded the support of $ 3,580 and is trading at $ 3,513. Later, it corrected above $ 3,600 and at the Fib retracement level of 23.6% from the recent low of $ 4,126 to $ 3,513. On the positive side, there are many barriers for buyers near the levels of $ 3,800 and $ 3,900. In addition, the crucial downtrend line highlighted yesterday is active with resistance at $ 3,900 on the hourly chart of the BTC / USD pair. The level of Fib 50% retracement of the recent fall from the maximum of $ 4,126 to $ 3,513 is also close to $ 3,819.
Looking at the chart, the price of bitcoin is clearly facing a daunting task close to the levels of $ 3,900 and $ 4,000. If there is no convincing break above $ 4,000, the price could fall to levels of $ 3,600 and $ 3,500.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC / USD is slightly positioned in the bullish zone.
RSI (Relative Strength Index) – The RSI is currently close to level 50.
Major Support Level – $ 3,600
Major resistance level – $ 4,000
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