Bitcoin Price Watch: Upsides In BTC Likely To Be Capped
- Bitcoin price is trading in a range above the $3,345 support level against the US Dollar.
- There is a major bearish trend line formed with resistance at $3,375 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price is likely to face a strong resistance near the $3,375 and $3,400 levels.
Bitcoin price is currently consolidating losses above $3,340 against the US Dollar. BTC could correct a few points, but upsides are likely to remain capped near $3,400.
Bitcoin Price Analysis
There was a short-term support formed near the $3,345 level in bitcoin price against the US Dollar. The BTC/USD pair corrected a few points and traded above the $3,360 and $3,370 levels. There was a break above the 23.6% Fib retracement level of the recent decline from the $3,444 high to $3,337 low. The price even spiked above the $3,375 resistance, but it failed to hold gains. Sellers defended gains above the $3,380 and $3,400 levels. As a result there was a fresh dip and the price retested the $3,345 support.
It is currently correcting higher towards the $3,375 and $3,380 resistances. There is also a major bearish trend line formed with resistance at $3,375 on the hourly chart of the BTC/USD pair. The 50% Fib retracement level of the recent decline from the $3,444 high to $3,337 low is also near $3,391. Finally, the 100 hourly simple moving average is positioned near the $3,390 level to act as a solid resistance. Therefore, it seems like there are many hurdles on the upside near $3,375, $3,390 and $3,400. On the downside, the key support is at $3,345, below which the price could break the $3,337 swing low.
Looking at the chart, bitcoin price is trading in a bearish zone below $3,400. If buyers gain traction above $3,375, $3,390 and $3,400, there could be a decent upward move towards $3,500 in the near term.
Hourly MACD – The MACD is slowly moving in the bullish zone, with lack of positive signs.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently positioned above the 50 level.
Major Support Level – $3,345
Major Resistance Level – $3,400