Bitcoin Price (BTC) Starts Fresh Collapse, Bears Eyeing $4K Again
Bitcoin price failed to correct above the $5,975 and $6,000 resistance levels. BTC to USD is sliding again and it could continue to slide below the $4,800 support area.
Key Takeaways: BTC/USD
- Bitcoin price is trading in a bearish zone below the $5,250 and $5,050 support levels against the US Dollar.
- BTC/USD traded below a key contracting triangle pattern with support near $5,255 on the 2-hours chart (data feed from Bitstamp) to enter a bearish zone.
- Ethereum is also diving and it is approaching the key $100.00 support area.
Bitcoin Price Analysis
In the past few sessions, there was a fresh round of selling and bitcoin price declined below the key $5,250 support area. It seems like BTC to USD failed to clear the $5,975 and $6,000 resistance levels, sparking a fresh decline.
Looking at the 2-hours chart, bitcoin even broke the $5,050 support level and the 50 simple moving average (2-hours, purple). The decline was such that the price broke the 50% Fib retracement level of the upward move from $3,861 to $5,973.
Besides, bitcoin price traded below a key contracting triangle pattern with support near $5,255 on the same chart. The price is now trading in a bearish zone below the $5,000 support area.
If bears remain in action, there could be a sharp decline below the $4,650 level. An immediate support is near the $4,360 level. The 76.4% Fib retracement level of the upward move from $3,861 to $5,973 is waiting near the $4,360 level to provide support.
Any further losses may perhaps spark more losses towards the $4,000 support area. Conversely, the price could attempt another recovery wave above the $4,950 and $5,000 resistance levels.
If the price settles above the $5,000 zone, there are chances of a decent comeback towards the $5,250 resistance level. The stated $5,250 zone is crucial since it is close to the 50 simple moving average (2-hours, purple).
Therefore, bitcoin price must climb above the $5,000 and $5,250 levels to start a strong recovery. If not, it might continue to move down towards the $4,360 and $4,100 levels.