Bitcoin experienced a steep decline after the resistance of $40,000 against the US Dollar. BTC moved into a bearish zone after breaking the $37,500 key support.
- Bitcoin began a sharp decline below $37,500 and $36,500 levels.
- The price currently trades at $37,500.
- The hourly BTC/USD chart showed a breaking below the key bullish trendline with support at $39,250 (data feed Kraken).
- In the short term, the pair could accelerate below the $35,000 support area.
Bitcoin Prices Drop 8%
Bitcoin prices struggled to break the $40,000 resistance area. BTC reached a peak of $40,029 before launching a new decline. The major decline was below $38,500, and $38,000 levels.
On the hourly chart for the BTC/USD pair, there was a dip below the bullish trend line. Support is near $39250. Even below $37,500 support, the pair fell below 100-hourly moving average and came down below that level.
The $35,000.00 level was finally crossed and it traded as low at $35.407. Now, it is consolidating losses at the $36,200 area. The upside is that bitcoin prices are now experiencing resistance around the $36,500 point.
Near the $36,000 zone is the 23.6% Fib Retracement level for the downmove from the $40.029 swing high and $35.407 low. Near the $37,500 breakdown zone, the next major resistance level could be where bears may take a stand.
Source: BTCUSD from TradingView.com
Also, the $27,500 area is near the Fib retracement levels of the decline from the $40,000.29 swing high to the $35,000.077 low. A new price increase must be initiated if the price reaches the $37500 mark.
BTC Losses:
Bitcoin could move lower if it fails to break the $36,500 resistance level. The $36,000 mark is an immediate support level for the downside.
Next major support can be seen at the level of $35,500. This is also the lowest point. Another sharp drop could be triggered by a downside breakout below the $35,000.500 level. Next major support is $34,200.
Indicators technical
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now in the oversold zone.
Major Support Levels – $36,000, followed by $35,500.
Major Resistance Levels – $36,500, $37,200 and $37,500.