Bitcoin Price Weekly Analysis: BTC/USD Nosedives Below ,800
- Bitcoin price fell significantly and traded below $ 4,000 and $ 3,800 against the US Dollar.
- There is a major bearish trend line formed with resistance at $ 4,200 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair is under pressure below $ 3,800 and it could even break the $ 3,500 support level.
Bitcoin price tumbled more than 15% and broke the $ 3,800 support against the US Dollar. BTC/USD could accelerate declines towards the $ 3,500 level.
Bitcoin Price Analysis
This past week, there was a tiny upside correction above the $ 4,300 level in bitcoin price against the US Dollar. However, the BTC/USD pair failed to gain traction above the $ 4,400 and $ 4,500 resistances. As a result, there was a sharp downside move and the price declined below the $ 4,000 support. The price declined more than 12% and it is currently trading well below $ 3,800 and 100 simple moving average (4-hours).
A new yearly low was formed at $ 3,620 and it seems like the current decline is not over. The last swing low was at $ 3,678 before the price started an upside correction. It moved above the 23.6% Fib retracement level of the recent decline from the $ 4,340 high to $ 3,678 low. However, the upside move was capped by the $ 4,000 level. The price was also rejected near the 50% Fib retracement level of the recent decline from the $ 4,340 high to $ 3,678 low. Finally, the price declined again and broke the $ 3,678 swing low. A new low was formed below $ 3,650 and it seems like there could be more losses. The next key support is near $ 3,500, below which the price could test $ 3,200.
Looking at the chart, BTC price is facing a lot of selling pressure below the $ 4,000 and $ 3,800 level. If there is an upside correction, the price could face sellers near $ 4,000.
Looking at the technical indicators:
4-hours MACD – The MACD for BTC/USD is placed heavily in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI is currently well below the 20 level.
Major Support Level – $ 3,500
Major Resistance Level – $ 4,000
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