Bitcoin price remained in a bearish trend below the $4,220 and $4,120 resistances against the US Dollar. BTC/USD could accelerate losses below $3,800 and $3,760 in the near term.
- Bitcoin price is trading well below the $4,220 resistance and the100 simple moving average (2-hours).
- BTC/USD is following a major declining channel with resistance at $4,090 on the 2-hours chart.
- BTC price is under pressure and it could continue to move down towards $3,700 or $3,620.
Bitcoin Price Analysis
After trading as low as $3,785, bitcoin price started a short-term correction against the US Dollar. BTC/USD recovered above the $3,950, $4,000 and $4,050 resistance levels, but gains were limited.
The 2-hour chart indicates that the price climbed above the $4,000 level and the 23.6% Fib retracement level of the last dive from the $4,266 high to $3,785 low. However, the price faced a strong selling interest near the $4,090-4,100 area.
Chart sourced by TradingView, Binance
Sellers protected gains above $4,100 and the 100 simple moving average (2-hours). More importantly, there was a rejection near the 50% Fib retracement level of the last dive from the $4,266 high to $3,785 low.
Finally, the price declined once again and traded below the $4,000 and $3,925 support levels. It seems like the price is in a major downtrend as it is following a major declining channel with resistance at $4,090 on the same chart.
The current bearish wave could continue below the $3,850 level in the near term. Below $3,850, the price is likely to break the $3,785 swing low. The next major support is near the $3,700 zone, which acted as a solid buy zone earlier.
On the flip side, if the price corrects higher, it could face sellers near the $4,000 and $4,040 levels. The main hurdle is near the channel resistance at $4,090-4,100.
Overall, bitcoin buyers need to fight hard to protect more losses below $3,800 and $3,700. If they fail, BTC is likely to accelerate declines towards the $3,500 and $3,250 levels in the coming sessions.
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