BTC Eyes Last Line of Defense

Bitcoin price failed to settle above the $4,200 hurdle against the US Dollar. BTC/USD declined and it remains at a risk of a major downside break below $3,650 and $3,550.

Important Points:

Bitcoin price traded as high as $4,195 and later declined below $4,000.
BTC broke a crucial bullish trend line with support $3,925 on the 2-hours chart.
The price declined below $3,780 and it remains at risk of more losses.

Bitcoin Price Analysis

After a sharp upward move, Bitcoin price faced sellers near the $4,195 level against the US Dollar. BTC/USD started a downside move and broke the $4,040 and $3,908 support levels to enter a bearish zone.

The 2-hours chart indicates that the price even broke the $3,780 support and the 100 simple moving average (2-hours). The decline was such that sellers managed to outpace buyers below the $4,000 support area.

Chart Source by TradingView, Binance

Moreover, the price cleared a crucial bullish trend line with support $3,925 on the same chart. The price tested a major support area near $3,650, which acted as a strong buy zone for buyers.

A short-term recovery is underway and the price moved above the $3,800 level and the 23.6% Fib retracement level of the recent decline from the $4,195 high to $3,652 low. However, the previous support near the $3,820 level and the 100 SMA is acting as a solid resistance.

If there is a break above the $3,820 resistance, the next barrier could be the 50% Fib retracement level of the recent decline from the $4,195 high to $3,652 low at $3,924.

Only a 2-hour close above $3,924 and $4,040 may push the price back in a positive zone. On the other hand, initial support is near the $3,650 level, below which the main support is at $3,550. Should Ether decline below the $3,550 level, the price may enter a medium-term downtrend.

Overall, Bitcoin price seems to be struggling to recover above $3,820 and the 100 SMA. If BTC continues to struggle, there could be a break below the $3,650 and $3,550 supports.

Summary

Bitcoin Price Analysis Dec 26: BTC Eyes Last Line of Defense

Article Name

Bitcoin Price Analysis Dec 26: BTC Eyes Last Line of Defense

Description

Bitcoin price failed to settle above the $4,200 hurdle against the US Dollar. BTC/USD declined and it remains at a risk of a major downside break below $3,650 and $3,550.

Author

Latika Mehrotra

Publisher Name

Coingape

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