Bitcoin Price Analysis: BTC Could Extend Losses Before Higher
- Bitcoin price traded above the $4,200 resistance before correcting lower against the US Dollar.
- There was a break below a key bullish trend line with support at $3,980 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The price may extend the current correction or consolidate before moving back above $4,050.
Bitcoin price moved back in a short term bearish zone below $4,050 against the US Dollar. BTC may dip a few more points before moving back above $4,000 and $4,050.
Bitcoin Price Analysis
Recently, we saw a nice upward move above the $4,100 resistance in bitcoin price against the US Dollar. The BTC/USD pair even broke the $4,200 and settled above the 55 simple moving average (4-hours). The price traded as high as $4,236 and later started a sharp downside correction. The price declined below $4,200 and $4,050. Moreover, there was a break below the 23.6% Fib retracement level of the last leg from the $3,145 low to $4,236 high.
Besides, there was a break below a key bullish trend line with support at $3,980 on the 4-hours chart of the BTC/USD pair. The pair tested the $3,690-$3,700 zone where buyers emerged. They defended the 50% Fib retracement level of the last leg from the $3,145 low to $4,236 high. At the outset, the price is trading nicely above the $3,690-$3,700 zone and it could move higher. However, the current price action indicates that the price may dip a few more points near $3,700 before more gains. On the upside, the price must break the $4,050 pivot level to start a fresh rally.
Looking at the chart, bitcoin price remains nicely supported above $3,690-$3,700 zone. Having said that, it won’t be easy for buyers to clear the $4,050 resistance zone.
Looking at the technical indicators:
4-hour MACD – The MACD for BTC/USD is placed in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI is currently moving above the 50 level.
Key Support Level – $3,690
Key Resistance Level – $4,050
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