- Bitcoin price rebounded nicely from the $3,875 support area against the US Dollar.
- The price traded above the $3,950 level, but it seems to be struggling near the $4,000 resistance.
- There is a major bearish trend line in place with resistance at $4,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair remains at a risk of a fresh drop as long as it is below the $4,000 and $4,040 resistance.
Bitcoin price is facing a significant resistance near $4,000 against the US Dollar. BTC could decline once again if buyers continue to face hurdles near $4,000 in the near term.
Bitcoin Price Analysis
Recently, we saw a sharp decline in bitcoin price below the $3,950 and $3,900 supports against the US Dollar. The BTC/USD pair found support near the $3,875 level and later bounced back. Buyers gained control and pushed the price above the $3,900 and $3,950 levels. There was also a break above the 50% Fib retracement level of the last drop from the $4,065 high to $3,875 swing low. However, the price failed to gain strength above the $4,000 resistance and the 100 hourly simple moving average.
There was also a rejection near the 61.8% Fib retracement level of the last drop from the $4,065 high to $3,875 swing low. Moreover, there is a major bearish trend line in place with resistance at $4,000 on the hourly chart of the BTC/USD pair. The pair is clearly facing a strong resistance near the $4,000 level. If buyers succeed in surpassing the $4,000 resistance, the next key resistances are near $4,020 and $4,040.