Bitcoin fell below $40,000 against the US Dollar, causing another drop. BTC might sustain further losses if the resistance level of $40,000 is not broken.
- Bitcoin experienced a second decline when it was unable to surpass the $40,000 resistance level.
- The price currently trades at $39,500.
- On the hourly chart for the BTC/USD pair, there is a bearish trend line that forms with resistance at $39,500 (data feed Kraken).
- If the close falls below $38,800, it could lead to a significant decline in the pair.
Bitcoin Price Gains Bearish Momentum
Bitcoin prices fell below $40,500 to enter a bearish zone. BTC moved into bearish territory by trading below $40,000 support and closing below the 100 hourly simple moving Average.
Even below the $39,000.00 support level, the price traded. The price has been consolidating its losses and is currently at $38,700. Near the $39,000.500 level is an immediate support on the upside. A key bearish trendline is also visible on the hourly BTC/USD chart with resistance close to $39,500.
The $39,000.00 Fib Retracement Level of the decline from the $42,950 swing high level to the $38,700 low is the next resistance.
Near the $40,000 mark, there is a first significant resistance. Near $40,500 is the main resistance and near the 100 hourly moving average. The price should rise above the $40,000.00 zone and the 100-hourly simple moving average to initiate a strong uptrend.
Source: BTCUSD at TradingView.com
The price of this case could rise to 50% Fib, which is the retracement level at the decline in the stock market from $42,950 high to $38,700 low.
BTC: More losses
Bitcoin could move lower if it fails to break the $40,000 resistance level. The $39,000 mark is a support level for the downside.
Next major support can be seen at the $38,800 area. If the downside breaks below $38,800, the price could reach the $37k support zone.
Technical indicators
Hourly MACD – The MACD is slowly gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $39,000, followed by $38,800.
Major Resistance Levels – $39,500, $39,800 and $40,000.
