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Bitcoin (BTC) Price Watch: Rally Takes Break, But Not Likely Over

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Bitcoin (BTC) Price Watch: Rally Takes Break, But Not Likely Over

Bitcoin price climbed higher towards the $4,040 level before correcting lower against the US Dollar.The price declined below $4,000 and tested the key $3,940 support area.Recently, there was a break above a connecting bearish trend line with resistance at $3,970 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair is currently moving lower, but it remains well supported near $3,940 and $3,920.Bitcoin price corrected gains recently below $4,000 against the US Dollar. BTC could bounce back as long as it is trading above the $3,900 pivot area in the coming sessions.Bitcoin Price AnalysisIn the weekly analysis, we saw a nice upward move above $4,000 in bitcoin price against the US Dollar. The BTC/USD pair even broke the $4,020 level and traded towards the $4,040 level. A high was formed at $4,041 and later the price corrected lower below $4,020. Sellers pushed the price below the $4,000 and $3,980 levels. There was a break below the 50% Fib retracement level of the last leg from the $3,884 low to $4,041 high.However, the $3,940 level acted as a strong support and the price stayed well above the 100 hourly simple moving average. Moreover, the 61.8% Fib retracement level of the last leg from the $3,884 low to $4,041 high also acted as a support. Later, the price bounced back above the $3,960 level. There was also a break above a connecting bearish trend line with resistance at $3,970 on the hourly chart of the BTC/USD pair. The pair spiked above the $4,000 level, but it failed to hold gains.At the moment, it is moving lower towards the $3,940 support level, where buyers are likely to emerge. If there are more losses, the price may find a strong support near the $3,920 level and the 100 hourly SMA. The next key support is at $3,900, which was a crucial resistance earlier. On the upside, an initial resistance is at $3,980 and $4,000. A successful close above the $4,000 barrier may open the doors for more gains above the $4,040 and $4,050 levels.Looking at the chart, bitcoin price is struggling to stay above the $4,000 level, but it remains well supported on dips. Having said that, if the price fails to stay above $3,920 and $3,900, it could move back in a bearish zone. The next major support is near the $3,850 level.Technical indicators:Hourly MACD – The MACD is about to move back in the bearish zone.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD recently declined below the 50 level, with a bearish angle.Major Support Levels – $3,940 followed by $3,920.Major Resistance Levels – $3,980, $4,000 and $4,040.

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Author: Aayush Jindal

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