Bitcoin Price Watch: BTC Turned Bearish Below $3,800

There was an increase in selling pressure on bitcoin price after it failed to clear the $3,850 level against the US Dollar. The BTC/USD pair started a downside move and broke the $3,800 and $3,700 support levels. It even broke the $3,600 level and traded as low as $3,563. There could be a short term correction from $3,563, but the price is trading well below the 100 hourly simple moving average.

An initial resistance is near the 23.6% Fib retracement level of the last decline from the $3,855 high to $3,563 low. Moreover, yesterday’s highlighted major bearish trend line is intact with resistance at $3,720 on the hourly chart of the BTC/USD pair. Finally, the 50% Fib retracement level of the last decline from the $3,855 high to $3,563 low is near the trend line. Therefore, if there is an upside correction, the price is likely to struggle near $3,720 and $3,800. A proper break above the trend line and the $3,800 resistance is needed for a decent upward move. If not, the price may continue to decline and it may even break the $3,500 support in the near term.

Looking at the chart, bitcoin price seems to be trading with a bearish angle below $3,720 and there are chances of more losses.

Looking at the technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI is moving with a bearish angle below the 40 level.

Major Support Level – $3,500

Major Resistance Level – $3,720