Bitcoin Price Watch: BTC/USD Bounce From Lows Could Fade Soon
- Bitcoin price declined and broke the last swing low at $3,730 against the US Dollar.
- There are two crucial bearish trend lines in place with resistance at $3,850 and $3,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price could face a solid resistance and it could decline back towards $3,730.
Bitcoin price jumped back after trading towards $3,620 against the US Dollar. However, upsides remain capped near the $3,900 and buyers are likely to struggle.
Bitcoin Price Analysis
Recently, there was an increase in selling pressure on bitcoin price below the $4,000 level against the US Dollar. The BTC/USD pair failed to break the $4,000 and $4,020 resistance levels. It declined below the $3,730 swing low and settled below the 100 hourly simple moving average. The decline was such that the price traded to a new low near the $3,630 level. Later, buyers protected more declines and pushed the price back above $3,730.
There was a break above the 23.6% Fib retracement level of the recent decline from the $4,063 high to $3,630 low. However, there are many hurdles for buyers on the upside near the $3,900 level. There are also are two crucial bearish trend lines in place with resistance at $3,850 and $3,900 on the hourly chart of the BTC/USD pair. Moreover, the 50% Fib retracement level of the recent decline from the $4,063 high to $3,630 low is near $3,850. Therefore, the price is likely to struggle to clear the $3,850 and $3,900 resistance levels.
Looking at the chart, bitcoin price is currently recovering nicely, but sellers seem to waiting near $3.900. If buyers fail to push the price above $3,900, there could be a fresh decline. On the downside, the key supports are $3,730 and $3,620.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is now well above the 50 level.
Major Support Level – $3,730
Major Resistance Level – $3,900
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