Bitcoin Price Watch: BTC Could Correct Lower Before Fresh Rally

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Bitcoin price rallied towards the $3,750 level and later started a downside correction against the US Dollar.There is a key bearish trend line formed with resistance at $3,640 on the hourly chart of the BTC/USD pair (data feed from Kraken).The price is likely to correct lower towards the $3,550 or $3,500 support levels before a fresh rally.Bitcoin price climbed higher and settled above the $3,500 resistance against the US Dollar. BTC is currently correcting lower, but dips remain supported above the 100 hourly SMA.Bitcoin Price AnalysisIn the weekly analysis, we saw a solid upward move above $3,500 in bitcoin price against the US Dollar. The BTC/USD pair even broke the $3,600 and $3,650 resistance levels. A fresh yearly high was formed at $3,745 and the price settled above the 100 hourly simple moving average. Later, the price started a downside correction and traded below the $3,700 and $3,650 levels. There was a break below the 23.6% Fib retracement level of the last wave from the $3,341 low to $3,745 high.At the moment, the $3,580 level is acting as a strong support. If there is a downside break, the price could test the $3,550 support level. It also coincides with the 50% Fib retracement level of the last wave from the $3,341 low to $3,745 high. More importantly, the 100 hourly simple moving average is positioned at $3,525 to act as a strong support. On the upside, an initial resistance is near the $3,625 level. There is also a key bearish trend line formed with resistance at $3,640 on the hourly chart of the BTC/USD pair. The pair must break the trend line and $3,650 for a fresh upward move.Bitcoin Price Analysis BTC ChartLooking at the chart, bitcoin price is showing signs of a downside correction below $3,600. However, as long as the price is above the $3,550 and $3,500 support levels, buyers remain in action.Technical indicatorsHourly MACD – The MACD moved back in the bearish zone, with a negative angle.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level, with a bearish bias.Major Support Level – $3,550Major Resistance Level – $3,650

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