Bitcoin fell against the US dollar and failed to grow above $40,000. BTC reached a weekly low, and may struggle to rise above $39,000.
- Bitcoin experienced a new downturn after failing to surpass the critical $40,700 resistance area.
- Price is back under $39,000, and there’s a 100 hourly simple moving mean.
- On the hourly chart for the BTC/USD pair, there was a breakout below a bullish trend line connecting with support close to $39,000. (Data feed from Kraken).
- However, the upsides of this pair might not be as high as $38,800.
Bitcoin Price Declines Sharply
Bitcoin prices attempted to move clear above the $40,000.500 mark. BTC was unable to break the $40,000.700 and 40.750 resistance levels.
Near $40,776 was the high and then the market reacted negatively. A sharp drop below $40,000 and the 100 hourly simple movement average was observed. A break was also seen below the connecting bullish trendline with support at $39,500, on the hourly charts of BTC/USD.
Bitcoin has fallen below $39,000, and is currently trading at the 100-hourly simple moving average. It was trading as low at $37,672 but is now consolidating losses.
It’s testing the 23.6% Fib Retracement Level of the recent fall from the $40776 swing high, to the $37,672 lower. A resistance level near $38,800 is immediate. Near the $39,000.00 zone, could be next major resistance.
Near the $39 250 zone is the Fib level that retraced the decline from $40,776 swing highs to $37,672 lows. Resistance is currently forming at the $39550 level, and the 100-hourly simple moving average.
Source: BTCUSD at TradingView.com
The price may begin to rise if it moves above $39,000. If the previous scenario is true, then the price might even break the $40,000 threshold. It is possible that the next significant resistance will be in the vicinity of $40,700.
BTC: More losses
It could fall further if bitcoin does not clear the $39,000.00 resistance zone. The $37,650 level is a support area for the downside.
Near the $37,000.500 mark is where you will find the next significant support. Another decline could be initiated if the price drops below the $37k500 level. If this happens, then the price may drop to $36,200.
Technical indicators
Hourly MACD – The MACD is slowly losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.
Major Support Levels – $37,650, followed by $37,500.
Major Resistance Levels – $39,200, $39,550 and $40,000.
