Bitcoin price traded to a new yearly low at $4,303 and later recovered. However, BTC/USD is facing a lot of hurdles near the $4,700 and $4,900 resistance levels.

  • Bitcoin price formed a new 2018 low near the $4,300 level.
  • BTC/USD is currently trading below a key bearish trend line with resistance at $4,700 on the 30-minute chart.
  • The price could extend the current recovery towards $4,900 if there is a break above $4,700.

Bitcoin BTC Price

Bitcoin Price Analysis

There was a sharp decline this week in bitcoin price from the $5,500 swing high. The price declined heavily and broke the $5,000 and $4,600 support levels to enter a major downtrend.

Bitcoin Price Analysis BTC Chart

Click to Enlarge Chart

Looking at the 30-minute chart of BTC/USD, the pair even broke the $4,500 support level and settled well the 25 simple moving average (30-minute). A new 2018 low was formed near $4,303 and later the price started an upside correction.

Buyers also pushed the price above the $4,500 resistance and the 23.6% Fib retracement level of the recent decline from the $5,021 high to $4,303 low. Moreover, the price was able to climb above the $4,600 pivot zone and the 25 simple moving average (30-minute).

However, the upside move was capped by the $4,700 resistance and a key bearish trend line on the same chart. Besides, there was no proper close above the 50% Fib retracement level of the recent decline from the $5,021 high to $4,303 low.

The price is currently moving lower towards the $4,600 support. Overall, it seems like there are many supports formed on the downside, starting with $4,500 and followed by $4,410. The main support is near the $4,300 level, below which the price could decline towards the $4,100 level.

Therefore, there are chances of an extended rebound above the $4,700 level in the near term. However, it won’t be easy for bitcoin buyers to surpass the $4,900 and $5,000 barriers. On the other hand, a downside break below $4,500 might push BTC back in a bearish zone.

The market data is provided by TradingView, Bitfinex.

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Posted by Dr. Latika Mehrotra

Ph.D in Data Mining, Blockchain enthusiast, and passionate about technology and science. Professor by profession and loves writing interesting articles about Cryptocurrencies, bitcoin, Ethereum, ripple, Forex and commodities.

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