Bitcoin Price Analysis: BTC/USD Crashes Below $440
Bitcoin price dived sharply vs the US Dollar, as BTC/USD broke below a couple of important support levels to trade below the $440 level.
There was an ascending channel pattern formed at the hourly chart (data feed via Bitstamp) of BTC/USD, which was cleared during the downside drift.
Bitcoin price to decline further?
BTC came under a heavy selling pressure during the past couple of sessions vs the US dollar and ETH. BTC/USD traded below an important support area of $440, and looks set for more losses in the near term.
There was an ascending channel pattern formed on the hourly chart (data feed via Bitstamp) of BTC/USD, which was broken during the downside move. Once the price broke the channel support, sellers took control and pushed the price down.
The price traded as low as $435 where the BTC bulls just managed to hold the downside. It is currently making an attempt to correct higher, but finding sellers near the 23.6% Fib retracement level of the last drop from the $458 high to $435 low.
Looking at the current price action, it looks like the price may correct a few more points higher and trade near the 50% Fib retracement level of the last drop from the $458 high to $435 low where it may face hurdles.
One may consider selling near the stated fib level, or even near the 100 hourly simple moving average. I think as long as the price is below the 100 hourly SMA, there lies a possibility of further losses.
On the downside, an initial support is at $435. A break below it could take the price towards the next support area of $430. The hourly MACD is in the bearish slope, pointing towards more losses.
Chart Source – TradingView.com and data feed by Bitstamp