Bitcoin Price Watch: BTC/USD Primed To Test $3,000

Key Points

  • Bitcoin price declined further and broke the $ 3,550 and $ 3,420 support levels against the US Dollar.
  • There is a major bearish trend line formed with resistance at $ 3,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The price is likely to decline further and it may even test the $ 3,000 level in the near term.

Bitcoin price declined heavily below $ 3,550 against the US Dollar. BTC/USD remains in a downtrend and it could even trade towards $ 3,000 or $ 2,800.

Bitcoin Price Analysis

After forming a short term support near $ 3,550, there was a tiny recovery in bitcoin price against the US Dollar. The BTC/USD pair traded above the $ 3,750 level, but upsides were capped near the $ 3,845 level. Finally, there was a fresh decline and the price traded below the $ 3,550 and $ 3,420 support levels. It is now trading well below the $ 3,750 level and the 100 hourly simple moving average.

A new multi month low was formed at $ 3,288 and the price is currently consolidating losses. An initial resistance is the 23.6% Fib retracement level of the last drop from the $ 3,849 high to $ 3,288 low. However, there are many resistances on the upside near $ 3,550 and $ 3,555. The previous support near $ 3,550 is a major hurdle. It coincides with the 50% Fib retracement level of the last drop from the $ 3,849 high to $ 3,288 low. Moreover, there is a major bearish trend line formed with resistance at $ 3,700 on the hourly chart of the BTC/USD pair.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price is clearly placed in a nasty downtrend below $ 3,550. As long as it is trading below $ 3,750, there could be more losses. The next stop for sellers below $ 3,250 may be $ 3,000 or even $ 2,800.

Looking at the technical indicators:

Hourly MACD – The MACD for BTC/USD is slowly reducing its bearish slope.

Hourly RSI (Relative Strength Index) – The RSI is moving higher towards the 40 level.

Major Support Level – $ 3,250

Major Resistance Level – $ 3,550

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Analysis – NewsBTC

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