Bitcoin (BTC) Price Showing Signs of Weakness, Sell Rallies?
- Bitcoin price settled below the $5,380 and $5,200 support levels against the US Dollar.
- The price is currently under pressure and facing sellers near $5,160 and $5,200.
- There is a short term declining channel forming with resistance near $5,160 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could struggle to move above $5,200 and it may revisit the $5,050 support area.
Bitcoin price dropped heavily after tether’s drama and settled below $5,380 against the US Dollar. BTC could consolidate in the short term before a fresh decrease to $5,000.
Bitcoin Price Analysis
Yesterday, we saw a sharp decline in bitcoin price below the $5,380 and $5,280 supports against the US Dollar. The BTC/USD pair even broke the $5,200 support and spiked below the $5,000 level. A new swing low was formed near $4,912 and recently the price corrected higher. However, the $5,280 and $5,250 levels acted as hurdles, and the price remained well below the 100 hourly simple moving average. After the price failed to clear $5,280, there was a drop below the $5,200 level.
The price declined below the 50% Fib retracement level of the last wave from the $4,913 swing low to $5,292 high. However, the $5,050 support prevented additional losses and the price recovered recently. Besides, the 61.8% Fib retracement level of the last wave from the $4,913 swing low to $5,292 high acted as a support. At the moment, the price is correcting higher, but facing a lot of hurdles near $5,160, $5,180 and $5,200. There is also a short term declining channel forming with resistance near $5,160 on the hourly chart of the BTC/USD pair.
If there is an upside break above $5,160, the price could test the $5,200 resistance. However, the price must move above the $5,250 and $5,280 levels to start a strong upward move. If it continues to struggle near $5,280, there is a risk of another dip below $5,120 and $5,100 in the near term. The next key support is at $5,050, below which there is a risk of a drop below the $5,000 support.
Looking at the chart, bitcoin price is under a lot of pressure below the $5,280 resistance level. If the bears remain in action for a long time, there is a risk of a sharp decline below the $5,050 and $5,000 support levels. On the upside, a close above $5,280 might push the price towards $5,380.
Hourly MACD – The MACD is currently in the bullish zone, with a few negative signs.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently moving higher towards the 50 level.
Major Support Levels – $5,100 followed by $5,050.
Major Resistance Levels – $5,160, $5,200 and $5,280.