Bitcoin price fell significantly below the $6,250 and $5,500 support levels. BTC/USD tested the $4,000 area and it is currently correcting higher above $4,750.
In the past few sessions, there was a sharp decline in the bitcoin price below the $7,500 support level. BTC/USD declined below many key supports such as $7,500 and $6,250.
Looking at the 1-hour chart, the price even crashed below the $5,000 support and settled well below the 25 simple moving average (1-hour, orange). Finally, there was a break below the $4,200 level and the price traded to a new yearly low at $3,998.
The market data is provided by TradingView, Bitfinex.
The price is currently correcting higher and trading above the $4,750 level. It surpassed the 23.6% Fib retracement level of the recent dive from the $8,034 swing high to the $3,998 low.
The first key resistance is near the $5,250 level. Moreover, the bitcoin price is likely to face sellers near the $5,500 level and a major bearish turn on the 1-hour chart.
The main hurdle is near the $6,000 level and the 25 simple moving average (1-hour, orange). It is also near the 50% Fib retracement level of the recent dive from the $8,034 swing high to the $3,998 low.
Therefore, Bitcoin is likely to struggle near the $5,500 and $6,000 levels in the coming sessions. If the price fails to continue above the $5,500 resistance, it could resume its decline.
Initial support is near the $4,750 level, below which the bears are likely to aim a test of the $4,200 level. Any further losses may perhaps call for a test of the $3,800 level.