Technical Indicators:
Support Level: $3940
Resistance Level: $4000
Key Points:
- Bitcoin price is struggling to break the $4000 resistance.
- BTC recently fell downwards and tested the $3940 support and 100 hourly SMA again.
- A bearish pattern line is formed at with resistance around $3980 on the hourly chart.
- It is very essential for Bitcoin price to reach above $4000 in order to stop the price from falling.
Bitcoin Price Analysis:
Summary: Bitcoin price is currently situated well above $3940 support, however, BTC could very soon fall downwards if it is unable to break above $4000 resistance level.
Bitcoin started to correct downwards yesterday after rising up to $4040. The downward momentum was able to break $4000 support level and the price further fell down to test $3940 support.
However, the selling pressure was not enough to break this support and hence bitcoin is currently placed well above this range. Also, there is a bearish pattern line formed with resistance around $3980 on the hourly chart. Hence, it is very essential for bitcoin price to break through the $4000 resistance level in order to avoid a sudden bearish momentum. If BTC is unable to break through, it might crash down and break through the current support.
The chart shows that the bitcoin price will most likely cross over the $4000 resistance level or crash down below the current support around $3940 very soon. Buyers need to gain pace in order to avoid losses.
