Bitcoin Price Watch: BTC Could Extend Losses Below $3,600

Key Points

  • Bitcoin price failed to correct higher above the $3,840 and $3,900 levels against the US Dollar.
  • There is a major bearish trend line in place with resistance at $3,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The price is currently at a risk of a downside break below the $3,660 and $3,600 support levels.

Bitcoin price is consolidating losses above the $3,600 support against the US Dollar. BTC may continue to struggle and it could even break the $3,500 pivot area.

Bitcoin Price Analysis

The past few hours were mostly bearish for bitcoin price below the $3,840 resistance against the US Dollar. The BTC/USD pair started an upside correction after trading as low as $3,669. It moved above the $3,700 and $3,740 levels. There was even a break above the 23.6% Fib retracement level of the recent drop from the $4,250 swing high to $3,669 low. However, the upside move was capped by the $3,840 and $3,850 resistances.

Moreover, there is a major bearish trend line in place with resistance at $3,800 on the hourly chart of the BTC/USD pair. The pair needs to break the trend line and the $3,840 resistance to gain momentum. The next resistance is near the $3,960 level. It represents the 50% Fib retracement level of the recent drop from the $4,250 swing high to $3,669 low. An intermediate resistance is near the $3,900 level and the 100 hourly simple moving average.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price may continue to move down if there is no break above $3,900. On the downside, a break below the $3,660 and $3,600 support levels could accelerate losses. The next key support is at $3,500, which may act as a decent buy zone.

Looking at the technical indicators:

Hourly MACD – The MACD for BTC/USD is back in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI moved back below 50 level with a bearish angle.

Major Support Level – $3,660

Major Resistance Level – $3,900

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Source: Newsbtc

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