Bitcoin Price Analysis: BTC/USD Could Tumble Further Below $3,000

By | December 7, 2018

Bitcoin price fell further and declined below the $3,620 support level against the US Dollar. BTC/USD settled below $3,400 and it seems like it could slide further below $3,000.



Important Points:

  • Bitcoin price traded further lower below the $3,705 and $3,620 support levels.
  • BTC/USD broke a major declining channel with support at $3,560 on the 2-hours chart.
  • BTC price remains in a major downtrend and it could tumble further below $3,000.

Bitcoin Price Analysis

After a failure to break the $3,860 resistance, bitcoin price started a fresh decline against the US Dollar. BTC/USD broke down and traded below the $3,705, $3,660 and $3,520 support levels.

The 2-hour chart indicates that the price declined heavily from the $3,908 swing high and declined below the key $3,620 support. It opened the doors for more losses and the price settled below the $3,400 level and the 100 simple moving average (2-hours).

btc/usd price analysis
btc/usd price analysis

Chart sourced by TradingView, Binance

During the decline, the price broke a major declining channel with support at $3,560 on the same chart. Sellers pushed the price towards the $3,300 level and a new yearly low was formed near $3,340. The price is currently consolidating above $3,300 with a bearish angle.

An initial resistance is near the $3,480 level and the 23.6% Fibonacci retracement level of the last decline from the $3,908 high to $3,344 low. If there are further gains, the price is likely to visit the $3,600 and $3,620 resistance levels.

The $3,620 level is crucial since it coincides with the 50% Fibonacci retracement level of the last decline from the $3,908 high to $3,344 low. The overall price action is very bearish below the $3,620 level and the $3,750 pivot level.

Therefore, there are high chances of more declines below the $3,344 low and the $3,300 support level. The next major support is near $3,000, below which the price may even tumble below the $2,880 level in the near term.

Overall, bitcoin buyers might continue to struggle as long as BTC is trading below the $3,620, $3,750 and $3,880 resistance levels.