Bitcoin Price Watch: BTC Primed For More Declines Below $3,350

  • Bitcoin price struggled to surpass the $3,500 resistance and declined sharply against the US Dollar.
  • There was a break below a connecting bullish trend line with support at $3,420 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The price is under pressure and it could continue to move down towards $3,350 or $3,300.

Bitcoin price moved back in a bearish zone below $3,440 against the US Dollar. BTC price might correct a few points, but upsides are likely to face sellers near $3,440 or $3,475.

Bitcoin Price Analysis

This past week, bitcoin price made a couple of attempts to break the $3,475-$3,500 resistance against the US Dollar. However, the BTC/USD pair failed to gain strength above $3,480 and started a fresh decline. It declined below the $3,440 support and the 100 hourly simple moving average. Moreover, there was a break below the 50% Fib retracement level of the last leg from the $3,345 swing low to $3,493 high. It opened the doors for more losses below the $3,400 support level.

More importantly, there was a break below a connecting bullish trend line with support at $3,420 on the hourly chart of the BTC/USD pair. The pair traded as low as $3,389 and it is currently correcting higher. It tested the 23.6% Fib retracement level of the recent decline from the $3,493 high to $3,389 low. However, there are many resistances, starting with $3,425 and the 100 hourly SMA. The next key resistance is near the $3,440 level. It represents the 50% Fib retracement level of the recent decline from the $3,493 high to $3,389 low. Having said that, the main resistance is near the $3,475-$3,500 area, above which the price might break $3,500.

Looking at the chart, bitcoin price is trading above the $3,375 support level. The current price action is bearish, but there could be a short term correction towards the $3,440 resistance.

Technical indicators

Hourly MACD – The MACD is slowly moving back in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently just near the 50 level, with a positive bias.

Major Support Level – $3,370

Major Resistance Level – $3,440

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