Bitcoin Price Technical Analysis – BTC/USD Short-term Bearish

Key Points

• Bitcoin price is struggling to move above $4200 against the US Dollar and heading lower.
• The BTC/USD pair is currently attempting a downside break below a contracting triangle at $4030 on the hourly chart (data feed from SimpleFX).
• A close below $4000 could result in more declines towards $3800 in the short term.

Bitcoin price is under short-term bearish pressure below $4100 against the US Dollar, and BTC/USD must hold $4000 to avoid more declines.

Bitcoin Price Support

There was a minor slide in Bitcoin price below $4200 against the US Dollar. The price made a downside move and traded below $4150 and the 100 hourly simple moving average. A close below $4200 and the 100 hourly SMA is a short-term bearish sign. The price recently traded towards the 38.2% Fib retracement level of the last decline from the $4475 high to $3935 low. However, it failed to stay above the $4200 level and the 100 hourly SMA.

As a result, it declined below $4150 and currently trading below $4000. The BTC/USD pair is currently attempting a downside break below a contracting triangle at $4030 on the hourly chart. It is another bearish signal, and if there is a close below $4000, it may result in more declines towards $3800. On the downside, the next major support sits at $3800. Below $3800, there can be a change in trend for BTC towards $3500.

On the upside, the broken support at $4080 is a short term resistance. The most important resistance for buyers is near $4200 and the 100 hourly simple moving average. Playing out range moves in the short term below $4200 can be considered.

Looking at the technical indicators:

Hourly MACD – The MACD is moving into the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI is heading lower and remains well below the 50 level.

Major Support Level – $4000

Major Resistance Level – $4200

 

Charts courtesy – SimpleFX

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

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