Bitcoin price extended its decline and traded below the $3,440 support level against the US Dollar.There is a major bearish trend line formed with resistance at $3,460 on the hourly chart of the BTC/USD pair (data feed from Kraken).The price is currently under a lot of pressure and it may slide further towards $3,200 or $3,000.
Bitcoin price accelerated losses below the $3,500 support against the US Dollar. BTC bears are in full control and it seems like they are eyeing a test of the $3,000 level.
Bitcoin Price Analysis
This week started with a bearish bias below the $3,500 support in Bitcoin price against the US Dollar. The BTC/USD pair traded lower and broke the $3,480 and $3,440 support levels. Sellers got control and pushed the price below the $3,400 support. A new yearly low was formed at $3,374 and the price is now trading well below the 100 hourly simple moving average. Recently, there was a short term correction above the $3,400 level. The price corrected above the 23.6% Fib retracement level of the recent decline from the $3,559 high to $3,372 low.
However, the previous supports near $3,440 and $3,450 acted as a strong barrier. The price even struggled to test the 50% Fib retracement level of the recent decline from the $3,559 high to $3,372 low. It is currently trading with a bearish angle below $3,500 and $3,440. An immediate support is at $3,375, below which the price is likely to decline towards the $3,300 and $3,220 supports. The main target for sellers in the medium term could be $3,000. On the upside, there are many hurdles near the $3,500 and $3,440 levels. There is also a major bearish trend line formed with resistance at $3,460 on the hourly chart of the BTC/USD pair.
Looking at the chart, Bitcoin price is trading in a downtrend below $3,440. There are high possibilities of more losses towards $3,300, $3,220 and $3,150 in the near term.
Hourly MACD – The MACD for BTC/USD is about to move back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is placed well below the 30 level.
Major Support Level – $3,220
Major Resistance Level – $3,460