- Bitcoin price rebounded nicely from the $3,875 support area against the US Dollar.
- The price traded above the $3,950 level, but it seems to be struggling near the $4,000 resistance.
- There is a major bearish trend line in place with resistance at $4,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair remains at a risk of a fresh drop as long as it is below the $4,000 and $4,040 resistance.
Bitcoin Price Analysis
Recently, we saw a sharp decline in bitcoin price below the $3,950 and $3,900 supports against the US Dollar. The BTC/USD pair found support near the $3,875 level and later bounced back. Buyers gained control and pushed the price above the $3,900 and $3,950 levels. There was also a break above the 50% Fib retracement level of the last drop from the $4,065 high to $3,875 swing low. However, the price failed to gain strength above the $4,000 resistance and the 100 hourly simple moving average.
There was also a rejection near the 61.8% Fib retracement level of the last drop from the $4,065 high to $3,875 swing low. Moreover, there is a major bearish trend line in place with resistance at $4,000 on the hourly chart of the BTC/USD pair. The pair is clearly facing a strong resistance near the $4,000 level. If buyers succeed in surpassing the $4,000 resistance, the next key resistances are near $4,020 and $4,040.
On the other hand, if the price fails to climb above $4,000, it could start a fresh decline. An initial support is near $3,970 and the 23.6% Fib retracement level of the last wave from the $3,873 low to $4,000 high. However, the main support is near the $3,940 level. It represents the 50% Fib retracement level of the last wave from the $3,873 low to $4,000 high. Any further losses could take the price towards the key $3,875 support level.
Looking at the chart, bitcoin price seems to be struggling near the $4,000 resistance. If it continues to struggle, there is a risk of another drop below the $3,940 and $3,900 support levels in the near term. On the upside, the main hurdles are near $4,000, $4,020 and $4,040.
Hourly MACD – The MACD is currently in the bearish zone, with negative signs.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD has moved below the 50 level and it could extend its slide.
Major Support Levels – $3,970 followed by $3,940.
Major Resistance Levels – $4,000, $4,020 and $4,040.
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