Bitcoin price started a downtrend from $4960 against the US Dollar. However, $2950 is monster long-term support for BTC/USD where sellers would struggle.
- Bitcoin price came under pressure during the past three weeks and declined below $4000.
- There is a major bullish trend line forming on the weekly chart of BTC/USD with support at $2950-2800.
- Any major dips towards the $2950 support would find strong buying interest.
Bitcoin Price Chart Analysis
We saw a solid ride in Bitcoin price after the BTC and BCH split, and BTC/USD traded towards the $4960 level.
A high was formed at $4963 (data feed of Kraken exchange) from where the pair started correcting lower. China’s ICO ban followed by exchanges decision to close operations in China ignited a downside wave in bitcoin.
The price tumbled and moved below the $4000 level and the 38.2% Fibonacci retracement level of the last wave from the $888 low to $4963 high. However, the downside move was protected by the $3000 handle.
There is a monster support zone just below $3000. A confluence of the 50% Fibonacci retracement level of the last wave from the $888 low to $4963 high is positioned near $2950.
There is also a major bullish trend line forming on the weekly chart of BTC/USD with support at $2950-2800. As long as the pair is above the trend line support and $2800, it remains in a long term uptrend.
At the moment, the pair is trading near $3700 and consolidating losses. There is a chance of another dip towards the $3400 level or even $3200.
However, buyers are waiting on the downside to take a stand above $3000. To sum up, as long as there is no weekly close below the $2950 support and the trend line, more gains are likely in the next 3-4 months and has a bright future.
On the upside, resistances are present near $4000, $4200 and $4500.
Trade safe traders and enjoy the ride!!!