Bitcoin price faced an increased selling pressure below $3,700 against the US Dollar. BTC/USD is aligned for the next break either bullish above $3,650 or bearish below $3,550. This past week, bitcoin price started a major downward move from the $4,037 swing high against the US Dollar. The BTC/USD pair declined heavily and broke the $4,000, $3,800, $3,725 and $3,650 support levels. The decline was nasty as there was a close below the $3,725 level and the 100 simple moving average (4-hours). It traded close to the $3,550 support area and later started consolidating losses. An initial resistance on the upside is near the $3,650 and $3,660 levels.
More importantly, there is a short term breakout pattern forming with resistance near $3,650 on the 4-hours chart of the BTC/USD pair. Therefore, the pair seems to be preparing the next break either above $3,650 or below $3,550 in the near term. A break above the $3,650 level may push the price towards the $3,660. It represents the 23.6% Fib retracement level of the last drop from the $4,037 high to $3,549 low. A successful close above the $3,660 and $3,665 level may open the doors for a bullish recovery towards $3,725. The main resistance is near the $3,790 level. It coincides with the 50% Fib retracement level of the last drop from the $4,037 high to $3,549 low.
Looking at the chart, BTC price could even break the $3,550 support and extend losses. In the stated bearish scenario, the price may extend losses below $3,500 and $3,400.
4-hours MACD – The MACD for BTC/USD is slowly moving in the bullish zone, with lack of strength.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently near the 30 level, with a bullish angle.
Major Support Level – $3,550
Major Resistance Level – $3,660