Bitcoin price declined further and traded to a new 2018 low below $3,700. Later, BTC/USD bounced back, but upsides could be capped near the $3,950 or $4,000.
- Bitcoin price declined and traded to a new 2018 low at $3,687.
- BTC/USD recovered later and broke a declining channel with resistance at $3,825 on the 30-minute chart.
- The price is likely to face a solid selling interest near the $3,950 and $4,000 resistances.
Bitcoin Price Analysis
In the last weekly bitcoin price watch, we discussed the chances of more losses below $3,800 and $3,700. The price did trade lower, broke the last swing low, and traded to a new 2018 low at $3,687.
Click to Enlarge Chart
Looking at the 30-minute chart of BTC/USD, the pair started a steady downward move from the $4,135 high and traded below the $4,000 support. Later, sellers pushed the price below the $3,950 support and the 25 simple moving average (30-minute).
A multi month low was formed near $3,680 and later the price recovered sharply. It traded above the $3,800 resistance and the 25 simple moving average (30-minute).
Moreover, there was a break above a declining channel with resistance at $3,825 on the same chart. Buyers pushed the price towards the $3,900 level and the 50% Fib retracement level of the recent decline from the $4,135 high to $3,687 low.
The current price action is positive as long as the price is above the $3,800 level and the 25 SMA. On the upside, the main hurdle for buyers is near the $3,950-4,000 zone. It also coincides with the 61.8% Fib retracement level of the recent decline from the $4,135 high to $3,687 low.
A convincing break above the $4,000 barrier is must for buyers to take control in the near term. If not, there is a risk of a fresh decline below $3,800 and $3,700 in the near term.
Overall, bitcoin rebounded nicely after trading to a new 2018 low at $3,687, but BTC must surpass the $4,000 barrier for steady gains. Similarly, Ethereum and ripple price also declined sharply, bounced back, and they both are now facing important hurdles.
The market data is provided by TradingView, Bitfinex.
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