Analysis

Bitcoin (BTC) Price Tumbles: Is This Trend Change or Correction?

  • Bitcoin price declined sharply after it broke the key $ 5,400 and $ 5,380 supports against the US Dollar.
  • The price even broke the $ 5,000 support level and tested the $ 4,900 support area.
  • There was a break below a major bullish trend line with support at $ 5,410 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair must climb back above $ 5,400 to avoid a fresh drop towards the $ 5,000 support area.

Bitcoin price declined heavily below $ 5,400 and $ 5,250 against the US Dollar. BTC is currently correcting higher, but it is likely to face a strong selling interest near $ 5,250 and $ 5,380.

Bitcoin Price Analysis

The past two sessions were eventful since there were heavy moves in bitcoin price below $ 5,400 against the US Dollar. After consolidating for a few hours above the $ 5,400 support, the BTC/USD pair started a strong decline. There were two nasty red candles formed and the price broke the $ 5,250 and $ 5,120 support levels. The decline started after there was a break below a major bullish trend line with support at $ 5,410 on the hourly chart.

The pair settled below the $ 5,250 level and the 100 hourly simple moving average. Sellers took control and pushed the price below the $ 5,000 support as well. A new weekly swing low as formed at $ 4,909 and the price is currently correcting higher. It already moved above the 50% Fib retracement level of the recent decline from the $ 5,513 high to $ 4,909 swing low. However, the $ 5,280 level acted as a strong resistance. Besides, the 61.8% Fib retracement level of the recent decline from the $ 5,513 high to $ 4,909 swing low also stopped gains.

At the moment, the price is consolidating near $ 5,180, with hurdles near $ 5,250, $ 5,280 and $ 5,300. Above $ 5,300, the main resistance is near the $ 5,380 level (the previous support). To start a strong upward move, the price must climb back above $ 5,400a and the 100 hourly simple moving average. If bitcoin continues to struggle near the $ 5,300 and $ 5,380 levels, it could resume its decline.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price clearly moved into a bearish zone below $ 5,380 and the 100 hourly simple moving average. It could correct in the short term, but sellers are likely to defend the $ 5,380-5,400 zone. On the downside, the price could revisit the $ 5,000 support area if it breaks the $ 5,120 support.

Technical indicators:

Hourly MACD – The MACD is slowly reducing its bearish slope, with no positive sign.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD recovered from the 20 level and it is currently near 30.

Major Support Levels – $ 5,120 followed by $ 5,000.

Major Resistance Levels – $ 5,250, $ 5,380 and $ 5,400.

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Analysis – NewsBTC

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