Bitcoin price analysis: A make or break situation for BTC/USD

• Bitcoin could test the levels close to $3,500 and even refresh the 2019 low around $3,340.
• Bitcoin bulls battling 23.6% Fib level resistance: technical levels remain positive.

Following Bitcoin rejection from above $4,000, Bitcoin has managed to stay above $3,800. The sharp declines saw Bitcoin test the support at $3,700 before reversing the trend upwards. However, the bullish momentum has stalled below $3,850. Lack of a catalyst to place Bitcoin in an upward trajectory will soon be detrimental to trend in the coming days.

Investors have a tendency to start selling when they realize that a breakout is either impossible or will delay. If they do, more supply will be created while demand will decrease significantly. Bitcoin could test the levels close to $3,500 and even refresh the 2019 low around $3,340.

To avoid the decline, Bitcoin price has only one option; to retrace above the 38.2% Fib retracement level with the last swing high of $4,189.30 and a low of $3,713.31 close to $3,900. Although $4,000 is within reach, the recent bull rally proved that $4,200 is an uphill task. However, if the bulls can stage another rally, there will be little  to no hindrance for Bitcoin at this level and Bitcoin could scale the levels towards $5,000.

Meanwhile, Bitcoin is trading at $3,818.60. It is battling with the 23.6% Fib level immediate resistance. The Relative Strength Index (RSI) is heading upwards to show that the bulls are present and the path of least resistance is to the north.

BTC/USD 1-hour chart