Bitcoin experienced a steep decline from $40,000 to the US Dollar support. BTC could recover but upsides may be limited to $38,000.
- Bitcoin began a dramatic decline below its $40,000 and $38,000 support levels.
- The current price trades below $38,000, and the simple moving average is 100 hours.
- The hourly BTC/USD chart shows a bearish trendline with resistance close to $36,500 (data feed Kraken).
- If the support level drops below $34,000, then it could move lower.
Bitcoin Price Extends Losses
The Bitcoin price began a significant decline below the support levels of $42,000 and $40,000 BTC moved further into bearish territory after moving below $38,000.
The stock traded at $34,007, and it is consolidating its losses. The 100-hourly simple moving average and its trading price are now below $38,000
The initial resistance for the upside is located at the level of $36,200. On the hourly chart for the BTC/USD pair, there is a bearish trend line that has resistance at $36,500. This trend line lies close to the 23.6% Fib level of the decline from $43,500 swing highs to $34,007 lows.
Near the $36,800 mark is the first major resistance. The upside breakout of the $36,800 resistance might trigger a recovery trend towards $38,000. Next is the $40,000 mark, where the bulls could aim for a $41,200 test.
Source: BTCUSD from TradingView.com
A level of intermediate resistance lies near to the 50% Fib Retracement level for the decline from $43,500 high to $34,007 lowest. If there is more gain, it may require a push towards $42,500.
BTC: More losses
Bitcoin could experience a further decline if it fails to gain traction above $36,500. The $34,500 area is a support zone for the downside.
Near the $34,000 support zone is where you will find your first significant support. A negative break below the 34,000-level support zone could trigger another significant decline. Near $32,500 is the next support zone, and below that the price may even fall below the $32,000 area.
Technical indicators
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level.
Major Support Levels – $34,500, followed by $34,000.
Major Resistance Levels – $36,250, $36,500 and $38,000.