Bitcoin price spiked towards the $4,000 resistance, but failed once again versus the US Dollar.
The price traded lower and broke the $3,950 and $3,940 support levels.
There was a break below a connecting bullish trend line with support at $3,925 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair remains well supported above $3,860 and the 100 hourly simple moving average.
Bitcoin price is still facing a strong resistance near the $4,000 zone against the US Dollar. BTC bears and bulls locked horns as the price prepares for the next key break.
Bitcoin Price Analysis
Yesterday, we discussed about a possible upside acceleration above $4,000 in bitcoin price against the US Dollar. The BTC/USD pair did gain traction and broke the last swing high near $3,972. It traded close to the $4,000 resistance, but failed to gain strength. A new weekly high was formed at $3,985 and later the price declined sharply. The decline was such that the price broke the $3,950 and $3,940 support levels.
More importantly, there was a break below a connecting bullish trend line with support at $3,925 on the hourly chart of the BTC/USD pair. The pair traded close to the $3,860 support, where buyers emerged. A low was formed at $3,864 and the price is currently correcting higher. It moved above $3,900 and the 23.6% Fib retracement level of the recent decline from the $3,985 high to $3,864 low. However, the price is facing resistance near the previous support at $3,925.
Besides, the 50% Fib retracement level of the recent decline from the $3,985 high to $3,864 low is acting as a resistance. It seems like there is an ascending channel in place with resistance at $3,930. A successful break above the channel and $3,940 could push the price towards the $3,970 level. On the downside, an initial support is near the $3,870 level and the 100 hourly simple moving average. The main support is at $3,860, below which the price could test the $3,830 level in the short term.
Looking at the chart, bitcoin price seems to be confined in a tight range below the $4,000 resistance. It could either climb above the $4,000 barrier and trade towards the $4,200 level or extend the recent decline. Having said that, the price must stay above the $3,830 level. If not, there is a risk of a sharp drop towards the $3,720 support.
Hourly MACD – The MACD is placed slightly in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is placed just above the 50 level.
Major Support Level – $3,860 followed by $3,830.
Major Resistance Level – $3,940, $3,975 and 4,000.
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