Bitcoin continued to fall below $40,000 against the US Dollar. BTC has been repairing its losses but could face resistance in the $39,000.
- Bitcoin fell below its $40,000-$39,500 support level.
- The daily simple moving average is at 100 hours and the price trades below $40,000
- A key bearish trendline is emerging with resistance close to $39,000. (Data feed from Kraken).
- Although the pair may correct higher than expected, upsides could be restricted to above $45,000
Bitcoin Prices Remain in Downtrend
The Bitcoin price fell below the $42,000 level of support and continued to decline. BTC was able to trade below the $41,200 level of support in order to fall into a bearish area.
Below the $40,000 mark and below the simple moving average of 100 hours, the decline picked up. Even breaking the $39,000.500 resistance, it traded down to $38,000. Now, it is correcting lost trades and trading higher than the $38,800 level.
Bitcoin has now reached the 50% Fib level to retrace the decline from its $40,450 high to the $38,000 low. The initial resistance for Bitcoin is at $29,300. Next is resistance at the $39,000. On the hourly chart for the BTC/USD pair, there is a bearish trend line that forms with resistance at $39,000.
Trend line close to the 61.8% Fib Retracement Level of the recent fall from $40,450 swing highs to $38,000 lows. Now, the main resistance lies near $40,000
Source: BTCUSD from TradingView.com
Clear moves above the $40,000 resistance level could signal a significant increase. Next major resistance will be near 40,450, as well as the 100 hourly simple movement average. Above which, the price could rise towards $41,200.
BTC Losses:
It could fall further if bitcoin does not start a wave of recovery above the $39,000.500 resistance zone. A support area for the downside is located near the $38,500 level.
Near the $38,000 mark is the next significant support. The price could gain bearish momentum if it breaks below the $38,000 support level. This would allow for a move towards $36,800.
Technical indicators
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is just above the 50 level.
Major Support Levels – $38,500, followed by $38,000.
Major Resistance Levels – $39,500, $40,000 and $40,450.
