- Bitcoin price is consolidating losses above the $3,560 support area against the US Dollar.
- There is a short term contracting triangle formed with resistance at $3,625 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price may soon make the next move either above $3,650 or below $3,540 in the near term.
Bitcoin price is preparing for the next key break above $3,650 against the US Dollar. A close above $3,650 could trigger bullish moves towards $3,720 and $3,800.
Bitcoin Price Analysis
After trading above the $3,700 level, bitcoin price faced renewed selling pressure against the US Dollar. More importantly, Ethereum’s bearish reaction sparked a downward move below $3,650 in the BTC/USD pair. It declined below the $3,620 support and the 100 hourly simple moving average. Besides, there was a break below the 23.6% Fib retracement level of the last wave from the $3,376 low to $3,716 high. The price even traded below the $3,600 support, but the $3,560 pivot acted as a solid support.
Additionally, the 50% Fib retracement level of the last wave from the $3,376 low to $3,716 high also acted as a support. At the outset, the price is currently holding the $3,560 support, with range moves. It seems like there is a short term contracting triangle formed with resistance at $3,625 on the hourly chart of the BTC/USD pair. Should there be an upside break above the $3,650 resistance, the price may climb towards the $3,700 and $3,750 levels. On the other hand, a downside break below $3,560 and $3,540 might trigger bearish moves. The next key supports are near $3,500 and $3,455.
