Bitcoin Consolidates Above $37.5K, Why BTC Could Nosedive

Bitcoin trades in a bearish zone of $39,000 below the US Dollar. If it struggles below $39,000., BTC may accelerate downwards.

  • Bitcoin has shown bearish signals below $40,000 and $39,000 levels.
  • This price trades below $39,000. The simple moving average is 100 hours.
  • On the hourly chart for the BTC/USD pair, there is a critical bearish trendline that forms with resistance close to $38,550 (datafeed from Kraken).
  • If the bulls are able to drive the price higher than $39,550, the pair could accelerate downwards.

Bitcoin’s Price Continues to Rise

Bitcoin prices remained below the $40,000 support area in a bearish zone. BTC tried to recover from the $38,500 area, but it remained below the$39,000.550 resistance.

The price fell further from the $39550 resistance area and the 100 hourly simple movement average. The price fell below the $38,800 support level and the $38,500 resistance levels. Below the $38,000 support level, the decline continued.

The price has been consolidating its losses since a low was formed at $37,625 Bitcoin is gradually moving higher, trading near the 23.6% Fib level of the decline from the swing high at $39.499 to the low at $37.625, and slowly climbing.

Close to $38,550 is the initial major resistance. On the hourly chart for the BTC/USD pair, there is a critical bearish trend line that forms with resistance at $38,550. It coincides with 50% Fib level of recent fall from $39 499 swing high to $27 625 low.

Bitcoin Price

Source: BTCUSD from TradingView.com

The price could rise further if it moves above the $38,550 resistance level. There is a chance of steady increases above the $39550 mark, which will be next in line. If the previous scenario is true, then the price might even try to move higher than the $40,000 resistance level.

BTC: More losses

Bitcoin could move lower if it fails to break the $38,550 resistance level. Support for the downside lies near the $37800 zone.

Near the $37.650 level is the next significant support. Near the $37.150 mark is the main support. The price could gain bearish momentum if it breaks below the $37.150 level. The price could plunge to the $36,500 mark or as low as $36,000.

Indicators technical

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $37,650, followed by $37,150.

Major Resistance Levels – $38,550, $39,550 and $40,000.

Get more Crypto News at CFX Magazine