Bitcoin began a new decline below $40,000 against US Dollar. BTC gains bearish momentum. It could drop as low as $35,000 at the support.
- Bitcoin began a new decline below its $40,000 and $39,000 levels.
- 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 $38,500 in the hourly BTC/USD chart (data feed Kraken).
- If it does not recover above $39,000, the pair could continue to fall towards $35,000
Bitcoin’s Price Continues to Fall
The Bitcoin price plunged further after failing to maintain above $42,000. BTC broke several important support areas near $40,000, triggering a bearish zone.
It traded below the $39,000 support level and 100 hourly simple moving mean. The bearish sentiment was evident. Even below the $38,000 level, it traded at $37.801. It is possible that the current price action will indicate more downsides to $37800.
Bitcoin price could face resistance at the $38,500 mark if there’s an upward correction. The 23.6% Fib Retracement Level of the decline from $41,920 high to $37.801 low is near.
A key bearish trendline is also in place with resistance close to $38,500, as shown on the hourly charts of BTC/USD. Near the $39,000.800 level is the first major resistance. This is near the Fib level that reflects the decline in the price from $41,920 high to $37.801 low.
Source: BTCUSD from TradingView.com
The trend line resistance could be broken and then the $39,800 level might trigger a gradual increase. For bulls, the next significant resistance could be close to the 40,500 level or the simple 100 hour moving average.
BTC: More losses
Bitcoin could move lower if it fails to break the $38,500 resistance level. The $37,800 area is a support zone for the downside.
Next major support can be seen at the $37,000. A downside breakout below the $37,000. support could cause a significant decline in the price. There is the possibility of the price moving towards $35,000 in the above scenario.
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 near the 30 level.
Major Support Levels – $37,800, followed by $37,400.
Major Resistance Levels – $38,500, $39,800 and $40,000.
