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 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.
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.