Bitcoin price started falling again after failing to hold above $ 40,000 against the US dollar. BTC is moving down and could even dip towards USD 35,000 in the short term.
- Bitcoin began another decline from well above the $ 40,000 pivot level.
- The price is now trading well below $ 39,000 and the 100-hour simple moving average.
- A large bearish trendline is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with resistance near USD 38,500.
- The pair is likely to decline further unless it stays above the USD 37,200 support zone.
Bitcoin price prolonged decline
Bitcoin failed to hold above the key USD 40,000 support zone and began another decline. BTC broke the USD 39,500 and USD 38,500 support levels to enter a short-term bearish zone.
The price traded below the 50% fib retracement level of the move up from the swing low of $ 34,822 to the swing high of $ 41,380. It is now trading well below $ 39,000 and the 100-hour simple moving average. A large bearish trendline is also forming on the hourly chart of the BTC / USD pair with resistance near $ 38,500.
Immediate support on the downside is near the $ 37,200 mark. It is near the 61.8% Fib retracement level of the move up from the swing low of $ 34,822 to the swing high of $ 41,380.
Source: BTCUSD on TradingView.com
In fact, if there is a downside break below the USD 37,200 support, the price may struggle to stay above the USD 36,500 support. Further losses could open the doors for a move towards the USD 35,000 support zone in the near future.
New rise in BTC?
If Bitcoin stays above the USD 37,200 support, it could see another spike. Initial resistance to the upside is near the $ 38,200 mark.
The first major resistance is near the $ 38,500 mark and the bearish trendline. A successful break above the trendline could move the price towards the $ 39,500 resistance zone and the 100 hour SMA. A close above the 100-hour SMA is a must for any further rise above the $ 40,000 resistance zone in the coming sessions.
Hourly MACD – The MACD is slowly moving into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now well below the 50 level.
Major support levels – $ 37,200 followed by $ 36,500.
Main Resistance Levels – $ 38,200, $ 38,500, and $ 40,000.