Bitcoin resumes decline, why bulls could be competing in the short term
Bitcoin has not tested the $40,000 resistance zone against the US dollar. BTC is now falling and it could slide towards the $36,000 support zone.
Bitcoin started another decline after failing to clear the $39,250 resistance zone. The price is now trading below $38,000 and the 100 hourly simple moving average. There was a break below a major bullish trendline with support near $37,500 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair could continue to decline towards the $36,000 support or even $35,500.
Bitcoin price rises below $40K
Bitcoin price tried to make a move towards the $40,000 resistance zone. However, BTC failed to gain pace above the $39,250 zone. It peaked near $39,290 and the price started another decline.
There was a clear movement below the $38,000 support level and the 100 hourly simple moving average. In addition, there was a break below a key bullish trendline with support near $37,500 on the hourly chart of the BTC/USD pair.
The pair traded below the 76.4% Fib retracement level of the key move from the $36,665 swing low to $39,290 high. It is now showing some bearish signs below the $37,000 level. On the upside, an initial resistance is near the USD 37,200 level.
Source: BTCUSD on TradingView.com
The first major resistance is near the $37,500 zone. The main hurdle now forms near the $38,000 zone and the 100 hourly simple moving average (the recent disturbance zone). A clear move above the $38,000 resistance could spark another rise. In the mentioned case, the price could hit the $39,250 level again.
Lose more in BTC?
If bitcoin fails to start a fresh rise above $38,000, it could continue to fall. An immediate support on the downside is near the $36,650 zone.
The first major support is seen near the $36,000 zone. It is near the 1.236 Fib extension level of the main move from the $36,665 swing low to $39,290 high. Even more losses may require a move into the $35,500 support zone in the near term. A downward breach below the $35,500 support zone may require a drop to $33,200.
Hourly MACD – The MACD is now gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level.
Key support levels – $36,000, followed by $35,500.
Major resistance levels – $37,500, $38,000 and $39,250.