Bitcoin resumes decline, why BTC could revisit $35K


Bitcoin started another drop below $40,000 against the US dollar. BTC is gaining bearish momentum and it could even fall towards the $35,000 support.

Bitcoin started another decline below the $40,000 and $39,000 levels. The price is trading below $40,000 and the 100 hourly simple moving average. A major bearish trendline is forming with resistance near $38,500 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair could continue declining towards $35,000 unless it recovers above $39,000.

Bitcoin price prolongs decline

Bitcoin price started another big decline after failing to stay above the $42,000 support. BTC broke many key supports near $40,000 to enter a bearish zone.

The price gained bearish momentum below the $39,000 level and the 100 hourly simple moving average. It even fell below the $38,000 support level and traded as low as $37,801. Current price action suggests more downsides below $37,800.

If there is an upward correction, bitcoin price may face resistance near the $38,500 level. It is close to the 23.6% Fib retracement level from the recent drop from the $41,920 swing high to $37,801 low.

A major bearish trendline is also forming with resistance near $38,500 on the hourly chart of the BTC/USD pair. The first key resistance is near the $39,800 level. It is close to the 50% Fib retracement level from the recent drop from the $41,920 swing high to $37,801 low.

Source: BTCUSD on TradingView.com

A clear move above the trendline resistance and then a move above USD 39,800 could trigger a steady rise. The next major resistance for the bulls may be near the USD 40,500 level and the 100 hourly moving average.

Lose more in BTC?

If bitcoin does not clear the $38,500 resistance zone, it could continue to fall. An immediate support on the downside is near the $37,800 zone.

The next major support is seen near the USD 37,400 level. If there is a downside break below the $37,400 support, the price could trigger a big drop. In the said case, there is a risk of a move towards the $35,000 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 near the 30 level.

Key support levels – $37,800, followed by $37,400.

Major resistance levels – $38,500, $39,800 and $40,000.

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