Bitcoin started a fresh decline below $ 40,000 against the US Dollar. BTC is gaining bearish momentum and could even drop to the $ 35,000 support.
- Bitcoin started a fresh decline below the $ 40,000 and $ 39,000 levels.
- The price is trading below $ 40,000 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $ 38,500 on the hourly chart of the BTC / USD pair (data feed from Kraken).
- The pair might continue to move down towards $ 35,000 unless it recovers above $ 39,000.
Bitcoin Price Extends Decline
Bitcoin price started another major decline after it failed to stay above the $ 42,000 support. BTC broke many important supports near $ 40,000 to enter a bearish zone.
The price gained bearish momentum below the $ 39,000 level and the 100 hourly simple moving average. It even declined below the $ 38,000 support level and traded as low as $ 37,801. The current price action suggests more downsides below $ 37,800.
If there is an upside correction, bitcoin price might face resistance near the $ 38,500 level. It is close to the 23.6% Fib retracement level of the recent decline from the $ 41,920 swing high to $ 37,801 low.
There is also a key bearish trend line forming with resistance near $ 38,500 on the hourly chart of the BTC / USD pair. The first key resistance is near the $ 39,800 level. It is close to the 50% Fib retracement level of the recent decline from the $ 41,920 swing high to $ 37,801 low.
Source: BTCUSD on TradingView.com
A clear move above the trend line resistance and then a move above $ 39,800 might start a steady increase. The next major resistance for the bulls may possibly be near the $ 40,500 level and the 100 hourly simple moving average.
More Losses in BTC?
If bitcoin fails to clear the $ 38,500 resistance zone, it could continue to move down. An immediate support on the downside is near the $ 37,800 zone.
The next major support is seen near the $ 37,400 level. If there is a downside break below the $ 37,400 support, the price might start a major decline. In the stated case, there is a risk of a move towards the $ 35,000 level.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now near the 30 level.
Major Support Levels – $ 37,800, followed by $ 37,400.
Major Resistance Levels – $ 38,500, $ 39,800 and $ 40,000.
