Bitcoin gained bearish momentum below $40,000 against the US Dollar. BTC risks further downside towards the $37,200 and $36,600 levels.
Bitcoin started another drop below the $40,000 and $39,000 levels. The price is trading below $39,000 and the 100 hourly simple moving average. There is a key bearish trend line forming with resistance near $39,000 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair might continue to move lower unless the bulls can push the price above $39,550.
Bitcoin price extends decline
Bitcoin price struggled to stay above the $40,000 support zone. As a result, BTC extended the decline below the $39,550 support zone and the 100 hourly simple moving average.
The price traded below the 61.8% Fibonacci retracement level of the main rise from the $37,160 low to $42,550 high. It is now showing some bearish signs below the $39,200 and $39,000 support levels.
Bitcoin is also testing the 76.4% Fibonacci retracement level of the main rise from the $37,160 low to $42,550 high at $38,430. If there is a minor recovery wave, the price could face resistance near the $38,850 level. The first major resistance on the upside is near the $39,000 zone.
There is also a key bearish trend line forming with resistance near $39,000 on the hourly chart of the BTC/USD pair. If there is a clear move above the $39,000 resistance zone, the price could go even higher.
Source: BTCUSD on TradingView.com
The next major resistance lies near the $39,550 level and the 100 hourly Simple Moving Average (SMA), above which there are chances of a steady recovery wave above the $40,000 resistance zone.
More losses in BTC?
If bitcoin fails to clear the $39,550 resistance zone, it could continue moving lower. An immediate support on the downside is near the $38,400 zone.
The next big support is seen near the $38,000 level. Major support lies near the latest low at $37,140. If there is a downside break below the $37,140 support, the price could gain bearish momentum. In the indicated case, it could dip towards the $36,600 or even $36,000 level.
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 now below the 50 level.
Major Support Levels – $38,000, followed by $37,140.
Major resistance levels: $39,000, $39,550 and $40,000.
This post Bitcoin Key Indicators Suggest a Strengthening Case for More Downside
was published first on https://www.newsbtc.com/analysis/btc/bitcoin-more-downsides-38k/
